CCT Key Federal Regulations 3 — Questions and Answers
Question 1: The Sarbanes-Oxley Act (SOX) Section 302 requires which corporate officers to certify financial reports?
- Chief Compliance Officer and Chief Risk Officer
- CEO and CFO (Correct answer)
- Board Chairman and Audit Committee Chair
- External Auditor and General Counsel
Correct answer: CEO and CFO
SOX Section 302 requires the CEO and CFO to personally certify the accuracy and completeness of financial statements filed with the SEC.
Question 2: Under HIPAA, a 'covered entity' includes all of the following EXCEPT:
- Health insurance companies
- Healthcare clearinghouses
- Law firms that advise hospitals (Correct answer)
- Healthcare providers who transmit PHI electronically
Correct answer: Law firms that advise hospitals
Law firms that advise healthcare entities are business associates, not covered entities; covered entities are providers, health plans, and clearinghouses.
Question 3: Which section of the USA PATRIOT Act expanded BSA requirements to include customer due diligence and beneficial ownership identification?
- Section 314(a)
- Section 314(b)
- Section 326 (Correct answer)
- Section 352
Correct answer: Section 326
Section 326 of the USA PATRIOT Act requires financial institutions to implement minimum customer identification procedures.
Question 4: The Fair Debt Collection Practices Act (FDCPA) applies primarily to:
- Original creditors collecting their own debts
- Third-party debt collectors (Correct answer)
- Federal student loan servicers
- Utility companies collecting past-due bills
Correct answer: Third-party debt collectors
The FDCPA primarily regulates third-party debt collectors who collect debts owed to another party, not original creditors collecting their own debts.
Question 5: Under the Electronic Funds Transfer Act (EFTA), what is the consumer's maximum liability for unauthorized transfers if reported within 2 business days?
- $0
- $50 (Correct answer)
- $500
- Unlimited
Correct answer: $50
If a consumer reports an unauthorized EFT within 2 business days, their maximum liability is limited to $50 under EFTA.
Question 6: The Community Reinvestment Act (CRA) was enacted to address which practice?
- Predatory lending in high-income areas
- Redlining and disinvestment in low-income communities (Correct answer)
- Excessive bank branch closures in rural areas
- Discrimination in commercial real estate lending
Correct answer: Redlining and disinvestment in low-income communities
CRA was passed in 1977 to encourage depository institutions to meet the credit needs of all communities they serve, particularly LMI areas historically denied access.
Question 7: Which federal agency is the primary regulator for national banks and federal savings associations?
- Federal Deposit Insurance Corporation (FDIC)
- Federal Reserve Board (FRB)
- Office of the Comptroller of the Currency (OCC) (Correct answer)
- Consumer Financial Protection Bureau (CFPB)
Correct answer: Office of the Comptroller of the Currency (OCC)
The OCC charters, regulates, and supervises national banks and federal savings associations as their primary prudential regulator.
CCT Key Federal Regulations 3
The Sarbanes-Oxley Act (SOX) Section 302 requires which corporate officers to certify financial reports?