CFP Regulatory Compliance & Standards 2 — Questions and Answers
Question 1: Under the Bank Secrecy Act (BSA), what is the currency transaction reporting threshold that triggers a mandatory CTR filing?
- $5,000
- $10,000 (Correct answer)
- $25,000
- $50,000
Correct answer: $10,000
The BSA requires financial institutions to file a Currency Transaction Report (CTR) for any cash transaction exceeding $10,000.
Question 2: Which regulatory body oversees the enforcement of the Truth in Lending Act (TILA) for non-bank fintech lenders in the US?
- Federal Reserve
- OCC
- Consumer Financial Protection Bureau (CFPB) (Correct answer)
- FDIC
Correct answer: Consumer Financial Protection Bureau (CFPB)
The CFPB holds primary enforcement authority over non-bank financial entities including fintech lenders under TILA.
Question 3: A fintech company operating as a money transmitter in the US must register with which federal agency?
- SEC
- FinCEN (Correct answer)
- CFTC
- OCC
Correct answer: FinCEN
Money service businesses, including money transmitters, must register with FinCEN (Financial Crimes Enforcement Network) at the federal level.
Question 4: Under PCI DSS, what is the minimum length required for passwords used by system administrators accessing cardholder data environments?
- 6 characters
- 8 characters
- 12 characters (Correct answer)
- 16 characters
Correct answer: 12 characters
PCI DSS v4.0 requires passwords for interactive user accounts to be at least 12 characters long.
Question 5: Which exemption under Regulation D historically limited consumers to six convenient transfers per month from savings accounts?
- Exemption 5
- Exemption 6 (Correct answer)
- Section 19(a)
- Section 11(b)
Correct answer: Exemption 6
Regulation D's Exemption 6 limited certain transfers from savings deposit accounts to six per month, though the Fed removed this limit in 2020.
Question 6: A robo-advisor fintech platform is most likely required to register under which regulatory framework?
- Money Services Business (MSB) rules
- Investment Advisers Act of 1940 (Correct answer)
- Securities Exchange Act of 1934
- Gramm-Leach-Bliley Act
Correct answer: Investment Advisers Act of 1940
Robo-advisors providing automated investment advice must register as investment advisers under the Investment Advisers Act of 1940.
Question 7: Under the Equal Credit Opportunity Act (ECOA), lenders must provide a notice of adverse action within how many days of a credit decision?
- 15 days
- 30 days (Correct answer)
- 45 days
- 60 days
Correct answer: 30 days
ECOA requires creditors to notify applicants of adverse action within 30 days of receiving a completed credit application.
CFP Regulatory Compliance & Standards 2
Under the Bank Secrecy Act (BSA), what is the currency transaction reporting threshold that triggers a mandatory CTR filing?