CCB Compliance Technology & RegTech 5

Question 1

A firm implements a graph database to map relationships between clients, accounts, and transactions for AML purposes. What compliance capability does this PRIMARILY enhance?

Accepted Answer

Network analysis to detect complex money laundering typologies involving multiple entities

Answer

Graph databases excel at revealing hidden connections and relationships across entities, enabling detection of sophisticated layering and structuring schemes in AML investigations.

Question 2

Which principle from the BCBS 239 guidelines is MOST directly supported by RegTech data management solutions?

Accepted Answer

Accuracy and integrity of risk data aggregation and reporting

Answer

BCBS 239 requires banks to have strong risk data aggregation capabilities; RegTech data management solutions directly support accuracy, completeness, and timeliness of risk data.

Question 3

When deploying a cloud-based RegTech solution, which legal concept determines which country's data protection laws apply to customer data stored in that cloud?

Accepted Answer

Data residency and data sovereignty requirements

Answer

Data residency and sovereignty rules determine the geographic location where data must be stored and which nation's laws govern its protection and access.

Question 4

A RegTech system flags a customer as high-risk based on an algorithmic score. The compliance officer disagrees. What governance principle requires documentation of this override?

Accepted Answer

Human-in-the-loop accountability and audit trail requirements

Answer

When humans override automated compliance decisions, accountability frameworks require documenting the rationale to maintain a complete and auditable record of compliance judgments.

Question 5

What is the main advantage of using synthetic data for testing compliance monitoring systems?

Accepted Answer

It allows testing with realistic patterns without exposing actual customer data and its associated privacy risks

Answer

Synthetic data mimics real transaction patterns while containing no actual customer information, enabling thorough system testing without violating data privacy regulations.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Compliance Technology & RegTech 5