Practice Test Geeks(CAM) Certified Account Manager Practice Test
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Regulatory Compliance Flashcards

7 cards from real CAM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Regulatory Compliance flashcards as text

  1. The Dodd-Frank Wall Street Reform Act established which new consumer protection agency?

    Answer: CFPB

    The Consumer Financial Protection Bureau (CFPB) was created by Dodd-Frank to regulate consumer financial products and services.

  2. Under the Equal Credit Opportunity Act (ECOA), how long must a creditor retain records for a completed credit application?

    Answer: 25 months

    ECOA requires creditors to retain records of credit applications and actions for 25 months (12 months for business credit).

  3. A compliance officer discovers that a branch has been charging higher rates to minority applicants with equivalent credit profiles. This most likely violates:

    Answer: The Fair Housing Act and ECOA

    Disparate pricing based on race violates both ECOA and the Fair Housing Act, which prohibit discriminatory lending practices.

  4. Which provision of Regulation E protects consumers using electronic fund transfer services against unauthorized transactions?

    Answer: The error resolution procedure

    Regulation E's error resolution procedures require institutions to investigate and resolve reported unauthorized EFT transactions within set timeframes.

  5. Under the Gramm-Leach-Bliley Act (GLBA), financial institutions must provide customers a privacy notice:

    Answer: Annually and when privacy practices change materially

    GLBA requires institutions to give customers an initial notice at account opening and an annual privacy notice thereafter.

  6. The Office of Foreign Assets Control (OFAC) maintains the Specially Designated Nationals (SDN) list. A financial institution that processes a payment to an SDN may face:

    Answer: Civil and criminal penalties

    OFAC violations can result in both civil monetary penalties and criminal prosecution, regardless of intent.

  7. Which regulation requires financial institutions to establish a Customer Identification Program (CIP) to verify the identity of account holders?

    Answer: USA PATRIOT Act Section 326

    Section 326 of the USA PATRIOT Act mandates that financial institutions implement CIP procedures to verify customer identities.