CRA Regulatory and Compliance Standards 2

Question 1

Under the Basel III framework, the Liquidity Coverage Ratio (LCR) requires banks to hold sufficient high-quality liquid assets to cover net cash outflows over what time period?

Accepted Answer

30 days

Answer

Basel III's LCR requires banks to maintain enough HQLA to survive a 30-day stress scenario of significant liquidity outflows.

Question 2

Which regulation established the Volcker Rule, which restricts proprietary trading by U.S. banking entities?

Accepted Answer

Dodd-Frank Wall Street Reform Act

Answer

Section 619 of the Dodd-Frank Act contains the Volcker Rule, prohibiting banks from engaging in short-term proprietary trading of securities.

Question 3

The EU's General Data Protection Regulation (GDPR) imposes a maximum fine for serious violations of up to what percentage of a company's global annual turnover?

Accepted Answer

4%

Answer

GDPR's highest tier of fines can reach 4% of total global annual turnover or €20 million, whichever is greater.

Question 4

Which U.S. federal law primarily governs anti-money laundering (AML) obligations for financial institutions by requiring Suspicious Activity Reports (SARs)?

Accepted Answer

Bank Secrecy Act

Answer

The Bank Secrecy Act (BSA) of 1970 established the core AML framework, including requirements to file SARs and Currency Transaction Reports.

Question 5

Under NIST SP 800-53, which control family specifically addresses personnel security risks such as background screening and employee termination procedures?

Accepted Answer

Personnel Security (PS)

Answer

The PS (Personnel Security) control family covers screening, onboarding, and separation procedures to mitigate insider threats.

(CRA) Certified Risk Architect Practice Test

(CRA) Certified Risk Architect Practice Test

CRA Regulatory and Compliance Standards 2