APRP Regulatory Compliance

Question 1

What is PCI DSS and why is it important for payment professionals?

Accepted Answer

Payment Card Industry Data Security Standard — a set of security requirements for organizations handling cardholder data

Answer

A government tax regulation for payment processors

Answer

A product certification for payment terminals

Answer

A professional development standard for payment staff

Question 2

What is the Bank Secrecy Act (BSA) and its requirements?

Accepted Answer

A U.S. law requiring financial institutions to maintain records and file reports that help detect money laundering and financial crimes

Answer

A law requiring banks to keep all customer information secret

Answer

A regulation about bank vault construction

Answer

A law governing bank employee confidentiality agreements

Question 3

What is KYC (Know Your Customer) in payment compliance?

Accepted Answer

A regulatory requirement to verify customer identity and assess risk to prevent fraud, money laundering, and terrorist financing

Answer

A customer relationship marketing strategy

Answer

A customer satisfaction survey program

Answer

A loyalty program tier designation

Question 4

What is AML (Anti-Money Laundering) compliance?

Accepted Answer

Programs and procedures designed to detect and prevent the use of financial systems to disguise illegally obtained funds

Answer

A cleaning service for bank branches

Answer

An automated machine learning system

Answer

An anti-malware protection program

Question 5

What are sanctions screening requirements for payment companies?

Accepted Answer

Checking transactions against government lists of prohibited individuals, entities, and countries to prevent illegal transfers

Answer

Screening job candidates for criminal backgrounds

Answer

Reviewing product quality standards

Answer

Evaluating vendor pricing proposals

Question 6

What is Regulation E and how does it protect consumers?

Accepted Answer

A federal regulation establishing consumers' rights regarding electronic fund transfers including error resolution and unauthorized transactions

Answer

A regulation about electrical safety in banks

Answer

An environmental regulation for payment terminal disposal

Answer

A regulation governing bank employee exercise programs