Regulatory Compliance Flashcards
7 cards from real ALA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Compliance flashcards as text
Under the Bank Secrecy Act and related anti-money laundering (AML) rules, a law firm handling large cash transactions may be required to:
Answer: File a Currency Transaction Report (CTR) for cash transactions exceeding $10,000
The Bank Secrecy Act requires financial institutions and certain businesses to file a CTR for cash transactions exceeding $10,000, and law firms handling such transactions may have similar obligations.
Which statute prohibits law firms from discriminating against employees aged 40 and older in hiring, firing, or promotion decisions?
Answer: Age Discrimination in Employment Act (ADEA)
The ADEA specifically protects individuals who are 40 years of age or older from employment discrimination based on age.
A legal administrator discovers that a vendor processing client data experienced a data breach. Under most U.S. state breach notification laws, the firm's obligation is to:
Answer: Notify affected clients and regulators within the timeframes required by applicable law
Most U.S. state breach notification laws require timely notification to affected individuals and, in some cases, regulators when personal information is compromised.
Under the Equal Pay Act of 1963, employers must pay male and female employees equally for jobs requiring equal:
Answer: Skill, effort, and responsibility performed under similar working conditions
The Equal Pay Act mandates equal pay for jobs that require substantially equal skill, effort, and responsibility and are performed under similar working conditions.
A law firm subject to the Consolidated Omnibus Budget Reconciliation Act (COBRA) must notify terminated employees of their right to continue group health coverage within how many days of the qualifying event?
Answer: 44 days
Under COBRA, the plan administrator must provide the qualified beneficiary with an election notice within 44 days of the qualifying event (14 days after the employer notifies the plan).
Which ethical obligation prevents a legal administrator from disclosing confidential client information learned during the course of employment?
Answer: The duty of confidentiality extending to all firm personnel, not just attorneys
Model Rule 5.3 and related ethics rules require that all firm personnel, including non-attorney staff, maintain the same confidentiality obligations as the supervising attorneys.
When auditing a law firm's compliance program, which element is considered a hallmark of an effective compliance structure?
Answer: A clear tone-at-the-top, written policies, training, monitoring, and a reporting mechanism
An effective compliance program requires leadership commitment (tone at the top), written policies, regular training, ongoing monitoring, and a confidential reporting channel.