Bank Code Regulations Flashcards
6 cards from real Bank Code practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Bank Code Regulations flashcards as text
Which organization sets the rules governing ACH transactions and routing number usage in the US?
Answer: NACHA (National Automated Clearing House Association)
NACHA (now operating as Nacha) is the self-regulatory organization that establishes and enforces the rules governing ACH transactions and the use of routing numbers in the US.
Under Nacha rules, how long does an Originating Depository Financial Institution (ODFI) have to initiate a reversal of an erroneous ACH entry?
Answer: 5 banking days
Under Nacha rules, an ODFI has up to 5 banking days from the settlement date of the original entry to initiate a reversing entry.
Which federal regulation governs consumer electronic fund transfers including ACH direct deposit?
Answer: Regulation E
Regulation E, implementing the Electronic Fund Transfer Act (EFTA), governs consumer electronic fund transfers including ACH direct deposits and debit card transactions.
What is the Bank Secrecy Act (BSA) requirement related to large wire transfers?
Answer: Banks must report wire transfers over $10,000 using a CTR (Currency Transaction Report)
Under the Bank Secrecy Act, banks must file a Currency Transaction Report (CTR) for cash transactions over $10,000, including related wire transfers.
Under the Dodd-Frank Act, the CFPB has authority to regulate which payment-related activities?
Answer: Consumer financial products and services including payment systems and electronic transfers
The CFPB has broad authority under Dodd-Frank to regulate consumer financial products and services including payment systems, electronic transfers, and remittances.
What is 'structuring' in US banking regulations and how does it relate to wire transfers?
Answer: Breaking up large transactions into smaller amounts to avoid reporting requirements
Structuring (also called 'smurfing') involves deliberately breaking up transactions into smaller amounts to avoid the $10,000 CTR reporting threshold — it is a federal crime.