Financial Regulations & Compliance Flashcards

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

Answer: $10,000

The BSA requires financial institutions to file a CTR for any cash transaction exceeding $10,000 in a single business day.

Which regulation implements the Truth in Savings Act and requires disclosure of deposit account terms?

Answer: Regulation DD

Regulation DD implements the Truth in Savings Act, requiring clear disclosure of interest rates, fees, and terms for consumer deposit accounts.

A customer deposits $9,500 on Monday and $1,000 on Tuesday at the same branch. What BSA obligation may apply?

Answer: File a SAR only if the teller suspects structuring

If a bank suspects the customer is structuring transactions to avoid CTR reporting, it must file a Suspicious Activity Report (SAR).

The Gramm-Leach-Bliley Act primarily requires financial institutions to:

Answer: Provide customers with privacy notices and opt-out rights

GLBA requires financial institutions to give customers privacy notices explaining data-sharing practices and provide opt-out options for sharing with non-affiliated third parties.

Which federal agency is primarily responsible for enforcing consumer protection laws at national banks?

Answer: Consumer Financial Protection Bureau (CFPB)

The CFPB has primary authority for enforcing federal consumer financial protection laws across most large banks and financial institutions.

Under Regulation E, how many business days does a bank generally have to investigate an electronic funds transfer error after receiving customer notice?

Answer: 10 business days

Under Regulation E, banks generally have 10 business days to investigate an EFT error complaint, or may extend to 45 days if a provisional credit is provided.

What does the term 'know your customer' (KYC) primarily require banks to do?

Answer: Verify customer identity and assess potential money laundering risks

KYC requires banks to verify customer identities, understand the nature of their business, and assess money laundering and terrorist financing risks.