CCEP Regulatory Frameworks 4

Question 1

A company discovers it unknowingly violated an OFAC sanction by processing a payment involving a Specially Designated National (SDN). Which is the MOST appropriate immediate first step?

Accepted Answer

Block the transaction or property if possible and conduct an initial internal review

Answer

OFAC regulations require blocking or rejecting prohibited transactions, and companies should immediately contain the violation and conduct an internal review before determining disclosure obligations.

Question 2

The EU's Market Abuse Regulation (MAR) is primarily designed to address which compliance risk?

Accepted Answer

Insider trading and market manipulation in financial markets

Answer

MAR establishes a harmonized EU framework prohibiting insider dealing, unlawful disclosure of inside information, and market manipulation.

Question 3

Under the U.S. Federal Sentencing Guidelines for Organizations (FSGO), which factor can INCREASE the culpability multiplier applied to a fine?

Accepted Answer

Prior history of similar misconduct within the past 10 years

Answer

Under the FSGO, prior similar conduct within 10 years is an aggravating factor that increases the culpability score and therefore the potential fine multiplier.

Question 4

Which of the following statements about the Gramm-Leach-Bliley Act (GLBA) Safeguards Rule is CORRECT?

Accepted Answer

It requires financial institutions to develop a written information security program

Answer

The GLBA Safeguards Rule requires financial institutions to develop, implement, and maintain a comprehensive written information security program to protect customer financial information.

Question 5

The concept of 'regulatory capture' describes which phenomenon?

Accepted Answer

A regulatory agency advancing the interests of the industry it oversees rather than the public

Answer

Regulatory capture occurs when a regulatory agency becomes dominated by the industry it is charged with regulating, acting in the industry's interest rather than the public interest.

(CCEP) Certified Compliance and Ethics Professional Practice Test

(CCEP) Certified Compliance and Ethics Professional Practice Test

CCEP Regulatory Frameworks 4