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.

Read the first 7 Regulatory Environment flashcards as text

  1. Under FinCEN's Customer Due Diligence (CDD) Rule, financial institutions are required to identify and verify the identity of beneficial owners who own what minimum percentage of a legal entity customer?

    Answer: 25%

    FinCEN's CDD Rule requires financial institutions to collect and verify the identity of any individual who owns 25% or more of an equity interest in a legal entity customer.

  2. Which U.S. federal regulation specifically addresses the rights and responsibilities of consumers using credit cards, including billing disputes?

    Answer: Regulation Z

    Regulation Z (implementing the Truth in Lending Act) governs credit card disclosures, billing error resolution, and consumer rights for credit card transactions.

  3. A payment processor discovers that one of its merchant clients is operating an undisclosed gambling website. Under card network rules and regulatory expectations, the processor's primary obligation is to:

    Answer: Terminate the merchant relationship and report suspicious activity if warranted

    Processors must terminate relationships with merchants engaged in undisclosed illegal or prohibited activity and may need to file a SAR if the activity constitutes money laundering or fraud.

  4. The Right to Financial Privacy Act (RFPA) restricts the ability of federal government authorities to access a customer's financial records without which of the following?

    Answer: A court order, subpoena, formal written request, or customer consent

    RFPA requires that the government obtain a customer's consent, a court order, a formal written request, or a subpoena before accessing their financial records from a financial institution.

  5. Regulation CC (Expedited Funds Availability Act) governs which specific aspect of payment processing?

    Answer: The timeframe within which banks must make deposited funds available to customers

    Regulation CC sets the maximum hold periods for deposited checks and establishes when financial institutions must make funds available to consumers.

  6. Which of the following best describes 'structuring' as it relates to BSA compliance?

    Answer: Breaking up transactions to evade currency transaction reporting requirements

    Structuring (also called 'smurfing') is the illegal practice of breaking large cash transactions into smaller amounts to avoid triggering the $10,000 CTR filing requirement.

  7. Under the Durbin Amendment (Dodd-Frank Act Section 1075), the Federal Reserve's interchange fee cap for debit card transactions applies to issuers with assets of at least:

    Answer: $10 billion

    The Durbin Amendment's interchange fee cap (approximately $0.21 + 0.05% per transaction) applies to debit card issuers with assets of $10 billion or more.