CCT Enforcement and Penalties 3

Question 1

Under the Sarbanes-Oxley Act Section 302, what is the maximum criminal penalty for a CEO or CFO who knowingly certifies a false financial report?

Accepted Answer

$5 million and 20 years imprisonment

Answer

SOX Section 906 provides for criminal penalties of up to $5 million and 20 years imprisonment for willful false certifications of financial statements.

Question 2

What term describes the penalty structure where the severity of a fine increases based on the number of prior violations within a rolling time period?

Accepted Answer

Recidivist multiplier

Answer

A recidivist multiplier increases penalties when a company has prior violations, reflecting that repeat offenders warrant greater deterrence.

Question 3

The SEC's Whistleblower Program under Dodd-Frank requires that awards be paid only when the whistleblower's information leads to a successful enforcement action resulting in sanctions exceeding what threshold?

Accepted Answer

$1 million

Answer

SEC whistleblower awards are available only when the related enforcement action results in monetary sanctions exceeding $1 million.

Question 4

Under the Bank Secrecy Act, what is the maximum civil money penalty per willful violation for failing to file a required Currency Transaction Report (CTR)?

Accepted Answer

$1,000,000

Answer

Willful BSA violations, including failure to file CTRs, can result in civil penalties up to $1,000,000 per violation.

Question 5

What is a 'cease and desist order' in the context of regulatory enforcement?

Accepted Answer

A formal regulatory directive requiring a company to stop a specific unlawful activity

Answer

A cease and desist order is an official regulatory command requiring the recipient to stop specified illegal or improper conduct.

(CCT) Certified Compliance Technician Practice Test

(CCT) Certified Compliance Technician Practice Test

CCT Enforcement and Penalties 3