APRP Regulatory Environment 5

Question 1

A merchant based in the U.S. processes credit card transactions for customers in the EU and stores cardholder data. Which two frameworks are most directly relevant to its compliance obligations?

Accepted Answer

PCI DSS and GDPR

Answer

PCI DSS governs the security of cardholder data globally, while GDPR applies to the personal data of EU residents regardless of where the processing company is located.

Question 2

Which federal agency has supervisory authority over state-chartered banks that are NOT members of the Federal Reserve System?

Accepted Answer

FDIC

Answer

The FDIC has primary federal supervisory authority over state-chartered banks that are not members of the Federal Reserve System (state non-member banks).

Question 3

In the context of AML risk assessments, 'geographic risk' for a payments company is most directly increased by:

Accepted Answer

Customers or transactions linked to FATF high-risk or non-cooperative jurisdictions

Answer

FATF (Financial Action Task Force) designates certain jurisdictions with strategic AML/CFT deficiencies, and transactions involving these high-risk countries elevate geographic risk in AML assessments.

Question 4

Under card network chargeback rules, which regulatory body has authority to impose fines on a card network (e.g., Visa or Mastercard) for systemic rule violations?

Accepted Answer

The card networks are self-regulatory with no external governmental fine authority over rules

Answer

Card network chargeback and operating rules are self-regulatory frameworks enforced by the networks themselves; no government agency has direct authority to fine networks for chargeback rule violations specifically.

Question 5

The Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 primarily impacts payment processors by:

Accepted Answer

Prohibiting them from knowingly processing payments for unlawful internet gambling transactions

Answer

UIGEA makes it illegal for payment processors, banks, and credit card companies to knowingly process payments for unlawful internet gambling, creating a due diligence obligation to identify and block such transactions.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Regulatory Environment 5