Regulatory Compliance & Risk Management Flashcards
7 cards from real CCB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Compliance & Risk Management flashcards as text
Which U.S. federal law prohibits bribery of foreign government officials by U.S. companies and individuals?
Answer: The Foreign Corrupt Practices Act (FCPA)
The Foreign Corrupt Practices Act (FCPA) of 1977 prohibits U.S. persons and companies from bribing foreign officials to obtain or retain business.
In a three-lines-of-defense model, who constitutes the SECOND line of defense?
Answer: Risk management and compliance functions
The second line of defense consists of risk management and compliance functions that oversee and challenge the first line's risk-taking activities.
A 'suspicious activity report' (SAR) under the BSA must be filed within how many days of initial detection of suspicious activity?
Answer: 30 days
Financial institutions must file a SAR within 30 calendar days of initial detection of facts that may constitute suspicious activity.
Which risk treatment option involves shifting the financial impact of a risk to a third party?
Answer: Risk transfer
Risk transfer shifts the financial burden of a risk to another party, typically through insurance policies or contractual agreements.
The OFAC sanctions program primarily requires organizations to:
Answer: Screen transactions and parties against prohibited persons and entities lists
OFAC requires organizations to screen customers, vendors, and transactions against its Specially Designated Nationals (SDN) and other sanctions lists.
What is the primary purpose of a Business Continuity Plan (BCP) in the context of risk management?
Answer: To ensure critical business functions continue during and after a disruptive event
A BCP ensures that essential business functions can continue or be quickly restored during disruptions such as natural disasters, cyberattacks, or other crises.
Which consumer protection law requires lenders to clearly disclose the Annual Percentage Rate (APR) and other loan terms to borrowers?
Answer: The Truth in Lending Act (TILA)
The Truth in Lending Act (TILA) requires creditors to disclose the cost of credit in a standardized manner, including the APR, to enable consumers to compare loan terms.