CCB Cross-Border Compliance Issues 2

Question 1

Under the EU General Data Protection Regulation (GDPR), which mechanism allows a US company to legally transfer personal data from the EU without relying on Standard Contractual Clauses?

Accepted Answer

EU-US Data Privacy Framework

Answer

The EU-US Data Privacy Framework, adopted in 2023, is the current adequacy decision allowing certified US companies to receive EU personal data lawfully.

Question 2

A multinational company has subsidiaries in 12 countries. Which approach to cross-border compliance governance best balances local adaptability with global consistency?

Accepted Answer

A hub-and-spoke model with central standards and local implementation teams

Answer

A hub-and-spoke model allows headquarters to set global standards while local teams adapt and implement those standards within their jurisdictions.

Question 3

Which US law requires companies to disclose payments made to foreign governments in the extractive industries, directly affecting cross-border compliance reporting?

Accepted Answer

Dodd-Frank Section 1504

Answer

Dodd-Frank Section 1504 (the Cardin-Lugar amendment) requires resource extraction issuers to disclose payments made to foreign governments for extractive activities.

Question 4

When a company discovers that a foreign subsidiary violated local anti-bribery laws, what is the FIRST step the compliance officer should take?

Accepted Answer

Preserve evidence and conduct a preliminary internal investigation

Answer

Preserving evidence and conducting a preliminary internal investigation ensures facts are secured before any disclosure or enforcement decisions are made.

Question 5

The UK Bribery Act 2010 differs from the US FCPA primarily in which respect?

Accepted Answer

The UK Bribery Act criminalizes commercial bribery between private parties, not just bribery of government officials

Answer

Unlike the FCPA, the UK Bribery Act criminalizes private-to-private commercial bribery in addition to bribery of public officials.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Cross-Border Compliance Issues 2