CCB Compliance Technology & RegTech 3

Question 1

A compliance team is evaluating whether to build or buy a RegTech solution. Which factor most strongly favors a 'buy' decision?

Accepted Answer

A mature vendor solution already addresses the firm's needs with proven regulatory acceptance

Answer

When a proven commercial solution meets the firm's needs and is already accepted by regulators, buying is typically faster and less risky than building a custom solution.

Question 2

Which technology is BEST suited for creating an immutable audit trail for compliance purposes?

Accepted Answer

Distributed ledger / blockchain technology

Answer

Blockchain's immutable, append-only distributed ledger creates tamper-evident records that are ideal for compliance audit trails.

Question 3

Under the EU AI Act, compliance AI systems classified as 'high-risk' are required to have which of the following?

Accepted Answer

Human oversight mechanisms and detailed documentation

Answer

The EU AI Act mandates that high-risk AI systems include human oversight mechanisms, maintain detailed technical documentation, and undergo conformity assessments.

Question 4

A RegTech vendor claims their AML screening tool uses machine learning to reduce false positives by 60%. What should a compliance officer do BEFORE deploying it?

Accepted Answer

Validate the claim using the firm's own data in a controlled pilot

Answer

Vendor claims must be independently validated using the firm's own data and transaction patterns before relying on the tool for compliance purposes.

Question 5

What is the primary purpose of an API gateway in a financial institution's RegTech architecture?

Accepted Answer

To manage, secure, and route data flows between compliance systems and external services

Answer

An API gateway acts as a central control point that manages authentication, authorization, and data routing between internal systems and external RegTech services.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Compliance Technology & RegTech 3