CBA Regulatory Compliance Audits 2

Question 1

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

Accepted Answer

$10,000

Answer

$5,000

Answer

$25,000

Answer

$50,000

Question 2

Which regulatory framework specifically governs the Community Reinvestment Act (CRA) examination process for large banks?

Accepted Answer

All of the above depending on the chartering authority

Answer

OCC Handbook Section 12 CFR 25

Answer

Federal Reserve Regulation B

Answer

FDIC Part 345 of Title 12

Question 3

When auditing HMDA compliance, what is the primary purpose of the Loan Application Register (LAR)?

Accepted Answer

To record and report data on mortgage applications for fair lending analysis

Answer

To track loan officer performance metrics

Answer

To document collateral valuations for each application

Answer

To maintain a log of declined applications for internal appeals

Question 4

An auditor discovers that a bank's OFAC screening system did not flag a transaction with a party whose name closely resembles but does not exactly match a Specially Designated National (SDN). What is the auditor's most appropriate conclusion?

Accepted Answer

A potential deficiency in the bank's fuzzy-matching or name-screening logic

Answer

No finding because an exact match is required for OFAC compliance

Answer

A critical violation requiring immediate SAR filing

Answer

Evidence of willful non-compliance requiring regulatory notification

Question 5

Under Regulation O, which of the following transactions with bank insiders is NOT generally prohibited?

Accepted Answer

Extensions of credit to directors on the same terms offered to the general public

Answer

Loans to executive officers at preferential interest rates

Answer

Overdraft privileges for directors not available to other customers

Answer

Loans to principal shareholders above applicable lending limits

Question 6

A bank's compliance audit reveals that mortgage servicing disclosures required under RESPA Section 6 were sent 15 days after loan servicing transfer. What is the regulatory requirement that was violated?

Accepted Answer

Notices must be sent at least 15 days before the effective transfer date

Answer

Notices must be sent within 3 business days of transfer completion

Answer

Notices must be sent at least 30 days before and 15 days after transfer

Answer

Notices must be sent within 5 business days prior to transfer

Question 7

Which examination procedure best tests a bank's compliance with the Fair Debt Collection Practices Act (FDCPA) as applied to third-party debt collectors the bank has engaged?

Accepted Answer

Auditing contracts with collection agencies and monitoring complaint logs for FDCPA-related issues

Answer

Reviewing the bank's general ledger for collection expense line items

Answer

Testing the bank's internal loan workout procedures only

Answer

Confirming that the bank has filed UCC financing statements for all charged-off loans