CBP Banking Regulations and Compliance 2

Question 1

Under the Dodd-Frank Act, which agency has primary supervisory authority over non-bank financial companies deemed systemically important?

Accepted Answer

Federal Reserve Board

Answer

The Federal Reserve Board supervises non-bank financial companies designated as systemically important financial institutions (SIFIs) under Dodd-Frank.

Question 2

A bank's compliance officer discovers a pattern of transactions that may constitute money laundering. Under BSA/AML rules, a Suspicious Activity Report (SAR) must be filed within how many calendar days of initial detection?

Accepted Answer

30 days

Answer

FinCEN requires SARs to be filed within 30 calendar days of the date the bank initially detected the suspicious activity.

Question 3

Which regulation implements the Equal Credit Opportunity Act (ECOA) and prohibits discrimination in credit transactions?

Accepted Answer

Regulation B

Answer

Regulation B implements ECOA and prohibits lenders from discriminating against applicants based on protected characteristics.

Question 4

Under the Volcker Rule, banks are prohibited from engaging in which of the following activities?

Accepted Answer

Proprietary trading in securities

Answer

The Volcker Rule prohibits banks from engaging in short-term proprietary trading of securities, derivatives, and other financial instruments for their own profit.

Question 5

The Community Reinvestment Act (CRA) primarily requires banks to:

Accepted Answer

Meet the credit needs of all segments of their communities, including low- and moderate-income areas

Answer

The CRA requires banks to help meet the credit needs of all community segments, particularly low- and moderate-income neighborhoods, consistent with safe and sound operations.

(CBP) Certified Banking Professional Practice Test

(CBP) Certified Banking Professional Practice Test

CBP Banking Regulations and Compliance 2