CCCP Regulatory Compliance & Legal Frameworks 2

Question 1

Under the Foreign Corrupt Practices Act (FCPA), which category of payments is explicitly exempted from the anti-bribery provisions?

Accepted Answer

Facilitating payments to expedite routine non-discretionary government actions

Answer

The FCPA contains a narrow exemption for 'facilitating payments' made to expedite or secure the performance of routine, non-discretionary government actions such as processing permits or providing utilities.

Question 2

A company discovers that its subsidiary in another country has been making undocumented cash payments to local officials. Under the FCPA's books-and-records provision, what is the primary obligation?

Accepted Answer

Ensure the payments are accurately recorded in the company's books and records

Answer

The FCPA's accounting provisions require issuers to maintain books and records that accurately and fairly reflect all transactions, including improper payments by subsidiaries.

Question 3

Which regulatory body has primary enforcement authority over the books-and-records provisions of the FCPA?

Accepted Answer

Securities and Exchange Commission (SEC)

Answer

The SEC enforces the FCPA's accounting provisions against issuers (public companies), while the DOJ enforces the anti-bribery provisions against both issuers and domestic concerns.

Question 4

Under the Dodd-Frank Act's whistleblower program, what is the eligible award range for a whistleblower whose original information leads to an SEC enforcement action exceeding $1 million in sanctions?

Accepted Answer

10% to 30% of sanctions collected

Answer

Dodd-Frank's whistleblower program awards eligible individuals 10% to 30% of monetary sanctions exceeding $1 million collected by the SEC based on their original information.

Question 5

A compliance officer discovers that the company's AML program has a significant gap in its customer due diligence procedures. Under FinCEN's CDD Rule, which customer type requires the highest level of beneficial ownership verification?

Accepted Answer

Legal entity customers such as corporations and LLCs

Answer

FinCEN's CDD Rule requires financial institutions to identify and verify the beneficial owners of legal entity customers (those owning 25% or more and one individual with significant control).

(CCCP) Certified Corporate Compliance Professional Practice Test

(CCCP) Certified Corporate Compliance Professional Practice Test

CCCP Regulatory Compliance & Legal Frameworks 2