CRCM Privacy and Data Security Compliance

Question 1

Under the Gramm-Leach-Bliley Act's Safeguards Rule, financial institutions are required to:

Accepted Answer

Develop, implement, and maintain a comprehensive information security program

Answer

Encrypt all customer data with AES-256 by default

Answer

Report all data incidents to FinCEN within 24 hours

Answer

Hire a Chief Information Security Officer with at least 10 years of experience

Question 2

The FTC's Safeguards Rule (updated 2023) requires covered financial institutions to designate:

Accepted Answer

A qualified individual to oversee the information security program

Answer

A board-level Privacy Committee

Answer

An external auditor to certify the program annually

Answer

A dedicated compliance hotline for data breach reports

Question 3

Under the GLBA Privacy Rule, a financial institution must provide customers the right to opt out of:

Accepted Answer

Sharing nonpublic personal information with nonaffiliated third parties

Answer

All data collection by the institution

Answer

Receiving account statements by mail

Answer

Receiving marketing calls from affiliated companies

Question 4

Under the Bank Service Company Act, when a bank contracts with a third party for services, the bank's compliance obligations:

Accepted Answer

Remain with the bank; it cannot outsource its compliance responsibilities

Answer

Transfer entirely to the third-party vendor

Answer

Are split 50-50 between the bank and vendor

Answer

Apply only to services over $1 million in annual contract value

Question 5

A notification to customers affected by a data breach is required under:

Accepted Answer

A combination of federal agency guidance and state data breach notification laws

Answer

BSA/AML regulations exclusively

Answer

HMDA reporting requirements

Answer

The Community Reinvestment Act

Question 6

Which section of the GLBA covers the financial privacy provisions and requires initial and annual privacy notices?

Accepted Answer

Title V (Privacy of Consumer Financial Information)

Answer

Title I (Bank Affiliations)

Answer

Title II (Functional Regulation)

Answer

Title IV (Unilateral Banking)