Practice Test GeeksAPRP - Accredited Payments Risk Professional Practice Test
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Regulatory Environment Flashcards

7 cards from real APRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Under NACHA Operating Rules, an Originating Depository Financial Institution (ODFI) that originates ACH debits is required to conduct which type of ongoing monitoring of its originators?

    Answer: Risk-based monitoring of originator return rates and transaction patterns

    NACHA rules require ODFIs to perform risk-based monitoring of originators, including tracking return rates and identifying unusual patterns that signal potential fraud or rule violations.

  2. Which regulatory framework governs the issuance and use of prepaid cards under U.S. federal law?

    Answer: Regulation E and the CFPB Prepaid Rule

    The CFPB Prepaid Rule (an amendment to Regulation E) established comprehensive consumer protections for prepaid accounts including disclosure requirements and error resolution rights.

  3. The Gramm-Leach-Bliley Act (GLBA) Safeguards Rule requires financial institutions to protect which category of information?

    Answer: Nonpublic personal information (NPI) of consumers

    GLBA's Safeguards Rule requires financial institutions to develop and maintain a comprehensive information security program to protect consumers' nonpublic personal information (NPI).

  4. A currency transaction report (CTR) must be filed with FinCEN for cash transactions exceeding what threshold in a single business day?

    Answer: $10,000

    The BSA requires financial institutions to file a CTR for any currency transaction exceeding $10,000 conducted by or on behalf of the same person in a single business day.

  5. Under the Electronic Fund Transfer Act (EFTA), which of the following scenarios represents a 'preauthorized electronic fund transfer' requiring special consumer notice rights?

    Answer: A recurring monthly mortgage payment debited automatically from a checking account

    Preauthorized EFTs are recurring debits authorized in advance, such as automatic monthly payments, which trigger specific notice and stop-payment rights under EFTA/Regulation E.

  6. Which of the following is a key difference between Enhanced Due Diligence (EDD) and standard Customer Due Diligence (CDD) in AML compliance?

    Answer: EDD requires deeper investigation and ongoing monitoring for higher-risk customers

    EDD involves more intensive scrutiny — such as verifying source of funds, senior management approval, and increased monitoring — for customers classified as higher risk than standard CDD covers.

  7. The FFIEC Examination Manual for retail payment systems is used primarily by which parties?

    Answer: Federal and state examiners when assessing bank payment system risk management

    The FFIEC (Federal Financial Institutions Examination Council) Retail Payment Systems booklet guides federal and state examiners in evaluating the risk management of payment systems at financial institutions.