BMO Industry Regulations & Compliance 3

Question 1

Under Regulation CC, what is the maximum hold period a bank may place on a local check deposit for a new account (open less than 30 days)?

Accepted Answer

9 business days

Answer

New account exception under Regulation CC allows banks to hold local checks for up to 9 business days.

Question 2

Which FFIEC guidance establishes expectations for banks' IT risk management and cybersecurity?

Accepted Answer

FFIEC Cybersecurity Assessment Tool (CAT)

Answer

The FFIEC Cybersecurity Assessment Tool helps institutions identify their cybersecurity risks and determine their preparedness.

Question 3

Under the Equal Credit Opportunity Act (ECOA), which of the following is a prohibited basis for denying credit?

Accepted Answer

National origin

Answer

ECOA prohibits discrimination in credit decisions based on national origin, race, sex, religion, and other protected characteristics.

Question 4

What is 'structuring' in the context of AML compliance?

Accepted Answer

Breaking up transactions to avoid currency reporting thresholds

Answer

Structuring ('smurfing') involves deliberately breaking large cash transactions into smaller amounts to evade CTR filing requirements, which is a federal crime.

Question 5

Basel III capital requirements mandate that banks maintain a minimum Common Equity Tier 1 (CET1) ratio of:

Accepted Answer

4.5%

Answer

Basel III requires banks to hold a minimum CET1 ratio of 4.5% of risk-weighted assets to ensure financial stability.

(BMO) Bank of Montreal Assessment Practice Test

(BMO) Bank of Montreal Assessment Practice Test

BMO Industry Regulations & Compliance 3