Banking Regulations and Ethics Flashcards
7 cards from real Banking Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Banking Regulations and Ethics flashcards as text
What is the primary purpose of the Volcker Rule enacted under Dodd-Frank?
Answer: Prohibit banks from proprietary trading and owning hedge funds
The Volcker Rule prohibits bank holding companies from engaging in proprietary trading and from owning or investing in hedge funds or private equity funds.
Under the Fair Debt Collection Practices Act (FDCPA), a debt collector may NOT contact a debtor:
Answer: Before 8 a.m. or after 9 p.m. local time
The FDCPA prohibits debt collectors from contacting debtors before 8 a.m. or after 9 p.m. in the debtor's local time zone.
A Suspicious Activity Report (SAR) must be filed within how many days of detecting suspicious activity?
Answer: 30 days
Financial institutions must file a SAR within 30 calendar days of initially detecting suspicious activity, or 60 days if no suspect is identified.
Which ethics principle requires bank employees to maintain client confidentiality and not disclose account information to unauthorized parties?
Answer: Duty of confidentiality
The duty of confidentiality obligates bank employees to protect customer information and not disclose it to unauthorized individuals or entities.
The Truth in Lending Act (TILA) primarily requires lenders to disclose:
Answer: The annual percentage rate and total cost of credit
TILA mandates disclosure of the annual percentage rate (APR) and total cost of credit so consumers can compare loan offers effectively.
Which federal agency is primarily responsible for enforcing anti-money laundering (AML) regulations in the U.S.?
Answer: Financial Crimes Enforcement Network (FinCEN)
FinCEN, a bureau of the U.S. Treasury Department, is the primary agency responsible for implementing and enforcing AML regulations under the BSA.
Under the Americans with Disabilities Act (ADA), banks are required to:
Answer: Provide equal access to banking services for people with disabilities
The ADA requires banks to provide equal access to their services and facilities for people with disabilities, including accessible ATMs and branch accommodations.