APRP Regulatory Compliance 3

Question 1

Under the NACHA Operating Rules, what is the maximum return rate threshold for unauthorized debit entries (Return Code R10) before NACHA may investigate an originator?

Accepted Answer

0.5%

Answer

NACHA's unauthorized return rate threshold is 0.5%; exceeding it triggers monitoring and potential suspension of the originator.

Question 2

The EU's revised Payment Services Directive (PSD2) introduced which major security requirement for electronic payments?

Accepted Answer

Strong Customer Authentication (SCA)

Answer

PSD2 mandated Strong Customer Authentication requiring at least two of three factors: knowledge, possession, and inherence.

Question 3

Which compliance concept requires a payments company to verify that a third-party processor complies with applicable rules before onboarding them?

Accepted Answer

Third-party due diligence

Answer

Third-party due diligence requires assessing a vendor's or partner's compliance posture before entering into a business relationship.

Question 4

What is 'structuring' in the context of BSA/AML compliance?

Accepted Answer

Breaking up large transactions to evade CTR reporting thresholds

Answer

Structuring (also known as 'smurfing') is the illegal practice of breaking transactions into smaller amounts to avoid BSA reporting thresholds.

Question 5

Under Regulation E, within how many business days must a financial institution provisionally credit a consumer's account after receiving notice of an unauthorized EFT error?

Accepted Answer

10 business days

Answer

Under Reg E, if an institution cannot complete its investigation within 10 business days, it must provisionally credit the consumer's account.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Regulatory Compliance 3