CCM Enforcement Actions & Penalties 2

Question 1

A consent order issued by a federal regulator differs from a cease-and-desist order primarily because a consent order:

Accepted Answer

Is agreed to voluntarily by the institution without admission of wrongdoing

Answer

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.

Question 2

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?

Accepted Answer

Financial Crimes Enforcement Network (FinCEN)

Answer

FinCEN is the primary BSA regulator with authority to assess civil money penalties against non-bank financial institutions.

Question 3

Which factor is typically considered an aggravating circumstance when regulators calculate the severity of a civil money penalty?

Accepted Answer

Concealment or lack of cooperation during the examination

Answer

Concealment or failure to cooperate with regulators is a classic aggravating factor that increases penalty severity.

Question 4

A 'Matter Requiring Attention' (MRA) issued after a bank examination is best described as:

Accepted Answer

A supervisory finding that directs management to correct a deficiency

Answer

An MRA is an informal supervisory tool directing a bank's management to address a specific deficiency, not a formal legal enforcement action.

Question 5

The False Claims Act's qui tam provision allows:

Accepted Answer

Private citizens (relators) to file suit on behalf of the government and share in recovered damages

Answer

The qui tam provision empowers whistleblowers (relators) to sue on the government's behalf and receive a percentage of any recovery.

(CCM) Certified Compliance Manager Practice Test

(CCM) Certified Compliance Manager Practice Test

CCM Enforcement Actions & Penalties 2