APRP Regulatory Compliance 4

Question 1

Which rule governs the liability shift for card-present counterfeit fraud in the U.S. EMV migration?

Accepted Answer

Card network chargeback liability shift rule

Answer

Card networks implemented a liability shift rule that transfers counterfeit fraud liability to whichever party in the transaction has not adopted EMV technology.

Question 2

Under FinCEN's Customer Due Diligence (CDD) Rule, which of the following is a required element for legal entity customers?

Accepted Answer

Identification of beneficial owners with 25% or more ownership

Answer

FinCEN's CDD Rule requires financial institutions to identify and verify beneficial owners who own 25% or more of a legal entity customer.

Question 3

What is the primary purpose of a Suspicious Activity Report (SAR) in the payments context?

Accepted Answer

To notify law enforcement of potentially illicit financial activity

Answer

SARs are filed with FinCEN to alert law enforcement about transactions that may involve money laundering, fraud, or other financial crimes.

Question 4

Which U.S. law requires financial institutions to maintain programs for identifying and reporting transactions involving proceeds of illegal activity?

Accepted Answer

Bank Secrecy Act

Answer

The Bank Secrecy Act (BSA) of 1970 establishes the legal foundation for AML programs, including recordkeeping and reporting requirements.

Question 5

An acquiring bank is held responsible for the fraudulent activity of one of its merchants. What compliance concept does this illustrate?

Accepted Answer

Acquirer liability / merchant sponsorship

Answer

Acquirer liability means that acquiring banks are responsible for ensuring their sponsored merchants comply with card network rules and applicable laws.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Regulatory Compliance 4