Regulatory Frameworks and Legal Compliance Flashcards

Under the Foreign Corrupt Practices Act (FCPA), which of the following payments is explicitly permitted as a 'facilitating payment' exception?

Answer: Small payments to low-level officials to expedite routine non-discretionary government actions

The FCPA's facilitating payment exception applies only to small payments made to expedite or secure routine, non-discretionary government actions such as processing permits or utilities.

A compliance officer discovers that a subsidiary in another country follows local laws that conflict with the parent company's U.S. regulatory obligations. The best approach is to:

Answer: Apply the stricter of the two standards and document the conflict for legal review

When conflicts exist between home and host country laws, compliance programs generally apply the stricter standard and document conflicts for legal counsel to resolve.

The Graham-Leach-Bliley Act (GLBA) primarily imposes compliance obligations on which type of organization?

Answer: Financial institutions that offer financial products or services to consumers

GLBA applies to financial institutions — including banks, insurance companies, and investment firms — requiring them to protect consumers' nonpublic personal financial information.

Which legal doctrine holds that a corporation can be held criminally liable for the acts of its employees if those acts were performed within the scope of their employment and at least in part to benefit the corporation?

Answer: Respondeat superior

Respondeat superior is the legal doctrine under which an employer is held liable for wrongful acts committed by employees acting within the scope of their employment.

The concept of 'regulatory capture' in compliance refers to:

Answer: A situation where a regulatory agency advances the interests of the industry it regulates rather than the public

Regulatory capture occurs when an agency meant to act in the public interest instead promotes the commercial or political interests of the industry it oversees.

Under the Dodd-Frank Act's whistleblower provisions, the SEC can award monetary compensation to whistleblowers who provide original information resulting in sanctions exceeding:

Answer: $1 million

Dodd-Frank Section 21F authorizes the SEC to pay awards of 10–30% of sanctions collected when the total sanctions exceed $1 million.

A company operating in the EU must appoint a Data Protection Officer (DPO) under GDPR in which of the following circumstances?

Answer: When core activities involve large-scale systematic monitoring of individuals or processing of special category data

GDPR Article 37 requires a DPO when core activities involve large-scale systematic monitoring, large-scale processing of special category data, or when the controller is a public authority.