CFP Regulatory Compliance & Risk Management 2

Question 1

Under the Bank Secrecy Act (BSA), what is the threshold for filing a Currency Transaction Report (CTR)?

Accepted Answer

$10,000

Answer

Financial institutions must file a CTR for any cash transaction exceeding $10,000.

Question 2

A fintech lender uses an algorithm that disproportionately denies credit to applicants from certain ZIP codes. This is most likely a violation of which regulation?

Accepted Answer

Equal Credit Opportunity Act (ECOA)

Answer

ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, or age, including disparate impact via algorithmic proxies like ZIP codes.

Question 3

Which risk management framework is most commonly used by fintech companies to assess and manage cybersecurity risks?

Accepted Answer

NIST Cybersecurity Framework

Answer

The NIST Cybersecurity Framework provides a policy framework of computer security guidance specifically designed to help organizations manage cybersecurity risk.

Question 4

What does 'regulatory sandbox' mean in the context of fintech?

Accepted Answer

A controlled environment where startups can test products with relaxed regulations

Answer

A regulatory sandbox allows fintech companies to test innovative products and services under regulator supervision without full regulatory compliance for a defined period.

Question 5

Under PCI DSS, what is the minimum requirement for storing cardholder Primary Account Numbers (PANs)?

Accepted Answer

They must be rendered unreadable using strong cryptography

Answer

PCI DSS Requirement 3 mandates that stored PANs be rendered unreadable using methods such as hashing, tokenization, or strong encryption.

(CFP) Certified Fintech Practitioner Practice Test

(CFP) Certified Fintech Practitioner Practice Test

CFP Regulatory Compliance & Risk Management 2