Practice Test Geeks(CBP) Certified Banking Professional Practice Test
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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

  1. A bank's BSA officer suspects a customer is 'structuring' cash deposits. Structuring refers to:

    Answer: Breaking up transactions into amounts just below $10,000 to evade CTR reporting

    Structuring (or 'smurfing') is the illegal practice of breaking up cash transactions to stay under the $10,000 CTR threshold, which itself is a federal crime.

  2. Under the Gramm-Leach-Bliley Act (GLBA), financial institutions must provide customers with privacy notices that explain:

    Answer: What nonpublic personal information is collected and how it may be shared

    GLBA's Privacy Rule requires financial institutions to disclose their information-sharing practices and give customers the opportunity to opt out of certain third-party disclosures.

  3. Under the Real Estate Settlement Procedures Act (RESPA), a kickback arrangement between a title company and a mortgage lender for referral fees is:

    Answer: Prohibited regardless of disclosure

    RESPA Section 8 prohibits kickbacks and unearned fee-sharing arrangements in residential real estate settlements, regardless of disclosure to the borrower.

  4. The Office of Foreign Assets Control (OFAC) maintains sanctions lists. When a bank's screening system generates a potential match, the bank must:

    Answer: Block or reject the transaction and file a report with OFAC if a true match is confirmed

    If a true OFAC match is confirmed, the bank must block the transaction/property and report it to OFAC; false positives should be documented and cleared through the bank's compliance process.

  5. Under the Electronic Fund Transfer Act (EFTA) and Regulation E, a consumer who reports an unauthorized debit card transaction more than 60 days after receiving the statement showing the error may face liability of:

    Answer: The full amount of the unauthorized transfers that occurred after the 60-day period

    If a consumer fails to report an unauthorized transfer within 60 days of the statement date, they may be liable for all transfers occurring after that 60-day period.

  6. The Net Stable Funding Ratio (NSFR) under Basel III is designed to:

    Answer: Require banks to fund long-term assets with stable funding over a one-year horizon

    The NSFR requires that available stable funding (ASF) be at least 100% of required stable funding (RSF) over a one-year horizon, reducing maturity mismatch risk.

  7. A bank that is found to have engaged in 'redlining' has most likely violated which law?

    Answer: Fair Housing Act and/or ECOA

    Redlining — refusing to lend in minority neighborhoods — violates the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA), both of which prohibit geographic discrimination based on race or national origin.