Practice Test Geeks(CBP) Certified Banking Professional Practice Test
← All CBP Flashcard Decks

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. Under the Sarbanes-Oxley Act (SOX), which section requires management of public companies, including publicly traded banks, to assess the effectiveness of internal controls over financial reporting?

    Answer: Section 404

    SOX Section 404 requires management to assess and certify the effectiveness of internal controls over financial reporting, with external auditor attestation.

  2. A bank subject to the Military Lending Act (MLA) must ensure that loans to covered borrowers — active-duty military members and dependents — do not exceed a Military Annual Percentage Rate (MAPR) of:

    Answer: 28%

    The MLA caps the MAPR on consumer credit to covered military borrowers at 36%, including interest, fees, and add-on products.

  3. Under the Fair Credit Reporting Act (FCRA), if a consumer disputes inaccurate information on their credit report, the credit reporting agency must investigate and resolve the dispute within:

    Answer: 30 days

    FCRA requires credit reporting agencies to complete their reinvestigation of disputed items within 30 days (or 45 days if the consumer submits additional information).

  4. A bank's compliance team is reviewing a loan portfolio for potential fair lending issues using statistical analysis. This approach is most directly associated with which type of discrimination theory?

    Answer: Disparate impact through neutral policies with discriminatory effects

    Disparate impact analysis uses statistical methods to identify neutral lending policies that disproportionately exclude or harm protected classes, even without discriminatory intent.

  5. Which federal law establishes the framework for the resolution and liquidation of large, complex financial institutions to avoid taxpayer-funded bailouts?

    Answer: Dodd-Frank Orderly Liquidation Authority (Title II)

    Dodd-Frank's Title II Orderly Liquidation Authority gives the FDIC resolution powers over large failing financial companies to avoid systemic collapse without public bailouts.

  6. Under the Bank Secrecy Act, the 'tipping off' provision means a bank employee who files a SAR must:

    Answer: Not disclose to the subject of the SAR or anyone outside of authorized parties that a SAR was filed

    BSA's tipping-off prohibition makes it illegal to notify the target of a SAR (or others not authorized to know) that a report has been filed, protecting the integrity of law enforcement investigations.

  7. A bank holding company is required to file which report with the Federal Reserve to provide quarterly financial data on its consolidated operations?

    Answer: FR Y-9C

    Bank holding companies with $3 billion or more in total consolidated assets must file the FR Y-9C quarterly to report consolidated financial condition and income data to the Federal Reserve.