Enforcement Actions & Penalties Flashcards
7 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Enforcement Actions & Penalties flashcards as text
A consent order issued by a federal regulator differs from a cease-and-desist order primarily because a consent order:
Answer: Is agreed to voluntarily by the institution without admission of wrongdoing
A consent order is a negotiated settlement that the institution agrees to without admitting guilt, whereas a cease-and-desist order may be unilaterally imposed.
Under the Bank Secrecy Act (BSA), which enforcement agency has primary authority to impose civil money penalties on non-bank financial institutions for BSA violations?
Answer: Financial Crimes Enforcement Network (FinCEN)
FinCEN is the primary BSA regulator with authority to assess civil money penalties against non-bank financial institutions.
Which factor is typically considered an aggravating circumstance when regulators calculate the severity of a civil money penalty?
Answer: Concealment or lack of cooperation during the examination
Concealment or failure to cooperate with regulators is a classic aggravating factor that increases penalty severity.
A 'Matter Requiring Attention' (MRA) issued after a bank examination is best described as:
Answer: A supervisory finding that directs management to correct a deficiency
An MRA is an informal supervisory tool directing a bank's management to address a specific deficiency, not a formal legal enforcement action.
The False Claims Act's qui tam provision allows:
Answer: Private citizens (relators) to file suit on behalf of the government and share in recovered damages
The qui tam provision empowers whistleblowers (relators) to sue on the government's behalf and receive a percentage of any recovery.
Which of the following best describes a 'deferred prosecution agreement' (DPA) in a corporate compliance context?
Answer: A negotiated agreement where prosecution is suspended if the company meets specified conditions
A DPA suspends criminal prosecution in exchange for the company fulfilling conditions such as compliance reforms, cooperation, and penalty payments.
When the CFPB uses its UDAP/UDAAP authority to take enforcement action, 'abusive' practices are distinguished from 'unfair' practices in that 'abusive' practices specifically target:
Answer: Consumer lack of understanding or inability to protect their own interests
Abusive acts or practices under UDAAP exploit consumers' lack of understanding, unreasonable reliance, or inability to protect their interests.