CBP Banking Regulations and Compliance 4

Question 1

A bank's BSA officer suspects a customer is 'structuring' cash deposits. Structuring refers to:

Accepted Answer

Breaking up transactions into amounts just below $10,000 to evade CTR reporting

Answer

Structuring (or 'smurfing') is the illegal practice of breaking up cash transactions to stay under the $10,000 CTR threshold, which itself is a federal crime.

Question 2

Under the Gramm-Leach-Bliley Act (GLBA), financial institutions must provide customers with privacy notices that explain:

Accepted Answer

What nonpublic personal information is collected and how it may be shared

Answer

GLBA's Privacy Rule requires financial institutions to disclose their information-sharing practices and give customers the opportunity to opt out of certain third-party disclosures.

Question 3

Under the Real Estate Settlement Procedures Act (RESPA), a kickback arrangement between a title company and a mortgage lender for referral fees is:

Accepted Answer

Prohibited regardless of disclosure

Answer

RESPA Section 8 prohibits kickbacks and unearned fee-sharing arrangements in residential real estate settlements, regardless of disclosure to the borrower.

Question 4

The Office of Foreign Assets Control (OFAC) maintains sanctions lists. When a bank's screening system generates a potential match, the bank must:

Accepted Answer

Block or reject the transaction and file a report with OFAC if a true match is confirmed

Answer

If a true OFAC match is confirmed, the bank must block the transaction/property and report it to OFAC; false positives should be documented and cleared through the bank's compliance process.

Question 5

Under the Electronic Fund Transfer Act (EFTA) and Regulation E, a consumer who reports an unauthorized debit card transaction more than 60 days after receiving the statement showing the error may face liability of:

Accepted Answer

The full amount of the unauthorized transfers that occurred after the 60-day period

Answer

If a consumer fails to report an unauthorized transfer within 60 days of the statement date, they may be liable for all transfers occurring after that 60-day period.

(CBP) Certified Banking Professional Practice Test

(CBP) Certified Banking Professional Practice Test

CBP Banking Regulations and Compliance 4