Practice Test Geeks(CBA) Certified Bank Auditor Practice Test
← All CBA Flashcard Decks

Regulatory Compliance Audits Flashcards

7 cards from real CBA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Regulatory Compliance Audits flashcards as text

  1. Under the Bank Secrecy Act (BSA), what is the minimum threshold that triggers a Currency Transaction Report (CTR) filing requirement?

    Answer: $10,000

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

  2. Which regulatory framework specifically governs the Community Reinvestment Act (CRA) examination process for large banks?

    Answer: All of the above depending on the chartering authority

    CRA regulations are implemented by the OCC (12 CFR 25), Federal Reserve (12 CFR 228), and FDIC (12 CFR 345), each governing their respective supervised institutions.

  3. When auditing HMDA compliance, what is the primary purpose of the Loan Application Register (LAR)?

    Answer: To record and report data on mortgage applications for fair lending analysis

    The HMDA LAR captures demographic and loan data to allow regulators and the public to assess whether banks are serving housing needs without discriminatory patterns.

  4. An auditor discovers that a bank's OFAC screening system did not flag a transaction with a party whose name closely resembles but does not exactly match a Specially Designated National (SDN). What is the auditor's most appropriate conclusion?

    Answer: A potential deficiency in the bank's fuzzy-matching or name-screening logic

    OFAC guidance requires screening to catch close name variants and aliases, so failure to match near-matches indicates a gap in screening logic.

  5. Under Regulation O, which of the following transactions with bank insiders is NOT generally prohibited?

    Answer: Extensions of credit to directors on the same terms offered to the general public

    Regulation O permits extensions of credit to insiders provided they are made on substantially the same terms as those offered to non-insiders.

  6. A bank's compliance audit reveals that mortgage servicing disclosures required under RESPA Section 6 were sent 15 days after loan servicing transfer. What is the regulatory requirement that was violated?

    Answer: Notices must be sent at least 15 days before the effective transfer date

    RESPA Section 6 requires the transferor servicer to send a notice at least 15 days before the effective date of the transfer of loan servicing.

  7. Which examination procedure best tests a bank's compliance with the Fair Debt Collection Practices Act (FDCPA) as applied to third-party debt collectors the bank has engaged?

    Answer: Auditing contracts with collection agencies and monitoring complaint logs for FDCPA-related issues

    Auditing third-party contracts and tracking consumer complaints is the most direct way to assess whether engaged collectors are operating within FDCPA boundaries.