CBP Compliance, Risk and Regulations 2

Question 1

Under the Bank Secrecy Act (BSA), what is the threshold above which a Currency Transaction Report (CTR) must be filed?

Accepted Answer

$10,000

Answer

$5,000

Answer

$25,000

Answer

$50,000

Question 2

Which regulatory framework establishes the three pillars of minimum capital requirements, supervisory review, and market discipline for banks?

Accepted Answer

Basel II Accord

Answer

Dodd-Frank Act

Answer

Sarbanes-Oxley Act

Answer

Glass-Steagall Act

Question 3

A bank's compliance officer discovers that a branch has been filing SARs but not retaining copies. Which BSA requirement has been violated?

Accepted Answer

Recordkeeping requirement

Answer

Customer Identification Program

Answer

Currency Transaction Reporting

Answer

Enhanced due diligence

Question 4

What does the term 'regulatory capital' primarily refer to in banking?

Accepted Answer

Capital required by regulators to absorb losses

Answer

Cash held in vault

Answer

Total deposits held by the bank

Answer

Interest income earned on loans

Question 5

Which of the following best describes 'model risk' in banking?

Accepted Answer

Risk that a financial model produces inaccurate outputs used in decision-making

Answer

Risk from hiring unqualified staff

Answer

Risk from regulatory model examinations

Answer

Risk of losing a banking license

Question 6

Under Regulation Z (Truth in Lending Act), what must lenders disclose to consumer borrowers?

Accepted Answer

Annual Percentage Rate (APR) and finance charges

Answer

Credit score used in underwriting

Answer

Internal risk rating of the loan

Answer

Projected default probability

Question 7

A bank wishes to open a new account for a high-risk customer. Which enhanced AML measure is most appropriate?

Accepted Answer

Enhanced due diligence (EDD)

Answer

Simplified due diligence

Answer

Waiving KYC requirements

Answer

Filing a CTR immediately