BMO Industry Regulations & Compliance 2

Question 1

Under the Bank Secrecy Act (BSA), what is the minimum cash transaction amount that triggers a Currency Transaction Report (CTR)?

Accepted Answer

$10,000

Answer

Financial institutions must file a CTR for any cash transaction exceeding $10,000 in a single business day.

Question 2

Which regulatory body primarily enforces the Community Reinvestment Act (CRA) for large national banks like BMO?

Accepted Answer

OCC

Answer

The Office of the Comptroller of the Currency (OCC) is the primary regulator for national banks and enforces CRA compliance.

Question 3

What does 'Regulation E' specifically govern in US banking?

Accepted Answer

Electronic fund transfers

Answer

Regulation E implements the Electronic Fund Transfer Act and protects consumers engaging in electronic transactions such as ATM and debit card use.

Question 4

A customer refuses to provide identification for a large cash transaction. What is the bank's appropriate response?

Accepted Answer

File a Suspicious Activity Report (SAR) and potentially decline the transaction

Answer

Refusal to provide ID for a large cash transaction is a red flag requiring a SAR filing and possible transaction refusal under BSA/AML rules.

Question 5

Under the Dodd-Frank Act, which bureau was created to oversee consumer financial protection?

Accepted Answer

Consumer Financial Protection Bureau (CFPB)

Answer

Dodd-Frank created the CFPB in 2010 as the primary federal agency responsible for consumer financial protection.

(BMO) Bank of Montreal Assessment Practice Test