CCM Regulatory Frameworks and Legal Compliance 2

Question 1

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

Accepted Answer

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

Answer

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.

Question 2

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:

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

Financial institutions that offer financial products or services to consumers

Answer

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

Question 4

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?

Accepted Answer

Respondeat superior

Answer

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.

Question 5

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

Accepted Answer

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

Answer

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.

(CCM) Certified Compliance Manager Practice Test

(CCM) Certified Compliance Manager Practice Test

CCM Regulatory Frameworks and Legal Compliance 2