CCB Regulatory Compliance & Risk Management 3

Question 1

Which U.S. federal law prohibits bribery of foreign government officials by U.S. companies and individuals?

Accepted Answer

The Foreign Corrupt Practices Act (FCPA)

Answer

The Foreign Corrupt Practices Act (FCPA) of 1977 prohibits U.S. persons and companies from bribing foreign officials to obtain or retain business.

Question 2

In a three-lines-of-defense model, who constitutes the SECOND line of defense?

Accepted Answer

Risk management and compliance functions

Answer

The second line of defense consists of risk management and compliance functions that oversee and challenge the first line's risk-taking activities.

Question 3

A 'suspicious activity report' (SAR) under the BSA must be filed within how many days of initial detection of suspicious activity?

Accepted Answer

30 days

Answer

Financial institutions must file a SAR within 30 calendar days of initial detection of facts that may constitute suspicious activity.

Question 4

Which risk treatment option involves shifting the financial impact of a risk to a third party?

Accepted Answer

Risk transfer

Answer

Risk transfer shifts the financial burden of a risk to another party, typically through insurance policies or contractual agreements.

Question 5

The OFAC sanctions program primarily requires organizations to:

Accepted Answer

Screen transactions and parties against prohibited persons and entities lists

Answer

OFAC requires organizations to screen customers, vendors, and transactions against its Specially Designated Nationals (SDN) and other sanctions lists.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Regulatory Compliance & Risk Management 3