Banking Regulations and Compliance Flashcards
7 cards from real CBP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Banking Regulations and Compliance flashcards as text
Under the Dodd-Frank Act, which agency has primary supervisory authority over non-bank financial companies deemed systemically important?
Answer: Federal Reserve Board
The Federal Reserve Board supervises non-bank financial companies designated as systemically important financial institutions (SIFIs) under Dodd-Frank.
A bank's compliance officer discovers a pattern of transactions that may constitute money laundering. Under BSA/AML rules, a Suspicious Activity Report (SAR) must be filed within how many calendar days of initial detection?
Answer: 30 days
FinCEN requires SARs to be filed within 30 calendar days of the date the bank initially detected the suspicious activity.
Which regulation implements the Equal Credit Opportunity Act (ECOA) and prohibits discrimination in credit transactions?
Answer: Regulation B
Regulation B implements ECOA and prohibits lenders from discriminating against applicants based on protected characteristics.
Under the Volcker Rule, banks are prohibited from engaging in which of the following activities?
Answer: Proprietary trading in securities
The Volcker Rule prohibits banks from engaging in short-term proprietary trading of securities, derivatives, and other financial instruments for their own profit.
The Community Reinvestment Act (CRA) primarily requires banks to:
Answer: Meet the credit needs of all segments of their communities, including low- and moderate-income areas
The CRA requires banks to help meet the credit needs of all community segments, particularly low- and moderate-income neighborhoods, consistent with safe and sound operations.
Which of the following best describes 'know your customer' (KYC) requirements under the Customer Identification Program (CIP)?
Answer: Banks must collect and verify identity information before establishing a customer relationship
CIP rules require banks to collect and verify identity information (name, address, date of birth, ID number) before establishing a new customer account.
Under Basel III, the Liquidity Coverage Ratio (LCR) requires banks to hold sufficient high-quality liquid assets to survive a stress scenario lasting:
Answer: 30 days
The LCR requires banks to maintain enough high-quality liquid assets to cover total net cash outflows over a 30-day stress period.