Key Federal Regulations Flashcards

Under the Bank Secrecy Act (BSA), what is the threshold for filing a Currency Transaction Report (CTR)?

Answer: $10,000 in a single day

The BSA requires financial institutions to file a CTR for cash transactions exceeding $10,000 in a single business day.

Which federal law established the Consumer Financial Protection Bureau (CFPB)?

Answer: Dodd-Frank Wall Street Reform and Consumer Protection Act

The Dodd-Frank Act of 2010 created the CFPB to regulate consumer financial products and services.

The Equal Credit Opportunity Act (ECOA) prohibits discrimination based on all of the following EXCEPT:

Answer: Credit score and payment history

ECOA prohibits credit discrimination based on protected characteristics; credit scores and payment history are legitimate underwriting factors.

Under the Truth in Lending Act (TILA), what must lenders disclose using the Annual Percentage Rate (APR)?

Answer: The true cost of credit including fees and interest

TILA requires disclosure of the APR, which reflects the true cost of credit by incorporating fees and interest into a standardized rate.

Which regulation implements the Home Mortgage Disclosure Act (HMDA)?

Answer: Regulation C

Regulation C implements HMDA, requiring covered lenders to collect and report data on home loan applications and originations.

The Right to Financial Privacy Act (RFPA) primarily restricts which entity from accessing customer financial records?

Answer: Federal government agencies

The RFPA limits the ability of federal government agencies to obtain customer financial records from financial institutions without proper authorization.

Under the USA PATRIOT Act, financial institutions must establish Customer Identification Program (CIP) procedures as part of which broader requirement?

Answer: Know Your Customer (KYC)

CIP is a core component of the KYC framework, requiring institutions to verify the identity of customers opening accounts.