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

PCI DSS establishes 12 core security requirements that any organization processing, storing, or transmitting cardholder data must meet to protect against data breaches and fraud.

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

The BSA requires financial institutions to file Currency Transaction Reports (CTRs), Suspicious Activity Reports (SARs), and maintain customer identification programs to combat money laundering.

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

KYC regulations require payment companies to verify customer identities, understand their financial activities, and assess risk levels to prevent the payment system from being used for criminal purposes.

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

AML compliance includes customer due diligence, transaction monitoring, suspicious activity reporting, and sanctions screening to prevent criminals from moving illicit funds through the payment system.

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

Payment companies must screen transactions against OFAC and other sanctions lists to ensure they don't process payments involving sanctioned individuals, entities, or countries.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Regulatory Compliance