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

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

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

CRA regulations are implemented by the OCC (12 CFR 25), Federal Reserve (12 CFR 228), and FDIC (12 CFR 345), each governing their respective supervised institutions.

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

The HMDA LAR captures demographic and loan data to allow regulators and the public to assess whether banks are serving housing needs without discriminatory patterns.

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

OFAC guidance requires screening to catch close name variants and aliases, so failure to match near-matches indicates a gap in screening logic.

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

Regulation O permits extensions of credit to insiders provided they are made on substantially the same terms as those offered to non-insiders.

(CBA) Certified Bank Auditor Practice Test

(CBA) Certified Bank Auditor Practice Test

CBA Regulatory Compliance Audits 2