CBA Regulatory Compliance Auditing 2

Question 1

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

Accepted Answer

$10,000

Answer

The BSA requires banks to file a CTR for any cash transaction exceeding $10,000 in a single business day.

Question 2

Which regulatory body is primarily responsible for enforcing the Community Reinvestment Act (CRA) for national banks?

Accepted Answer

OCC

Answer

The Office of the Comptroller of the Currency (OCC) is the primary federal regulator responsible for CRA examinations of national banks.

Question 3

A bank's compliance audit reveals that loan officers have been redlining minority neighborhoods. Which law is most directly violated?

Accepted Answer

Equal Credit Opportunity Act

Answer

Redlining violates the Equal Credit Opportunity Act (ECOA), which prohibits discrimination in credit decisions based on race or national origin.

Question 4

What does the term 'structuring' refer to in the context of BSA/AML compliance?

Accepted Answer

Breaking up transactions to avoid CTR reporting thresholds

Answer

Structuring (also called 'smurfing') is the illegal practice of breaking up large cash transactions to stay below the $10,000 CTR reporting threshold.

Question 5

Which examination rating system do federal banking regulators use to evaluate bank safety and soundness, including compliance components?

Accepted Answer

CAMELS

Answer

CAMELS (Capital, Assets, Management, Earnings, Liquidity, Sensitivity) is the standardized examination rating system used by federal bank regulators.

(CBA) Certified Bank Auditor Practice Test

(CBA) Certified Bank Auditor Practice Test

CBA Regulatory Compliance Auditing 2