Certified Regulatory Compliance Manager MCQ Flashcards

Under the Fair Debt Collection Practices Act (FDCPA), a debt collector may NOT contact a consumer:

Answer: Before 8 AM or after 9 PM local time

The FDCPA prohibits debt collectors from contacting consumers before 8 AM or after 9 PM in the consumer's local time zone.

Which of the following best describes 'structured transactions' or 'structuring' under BSA/AML regulations?

Answer: Breaking up large cash transactions specifically to evade CTR reporting requirements

Structuring involves deliberately breaking up currency transactions into amounts below $10,000 to avoid triggering CTR filing requirements, which is itself a federal crime.

Regulation E primarily governs:

Answer: Electronic fund transfers

Regulation E implements the Electronic Fund Transfer Act and establishes the rights and liabilities of consumers and financial institutions for EFTs.

A bank's BSA/AML compliance program must include which four pillars as required by federal regulation?

Answer: Internal controls, independent testing, designated BSA officer, and customer due diligence

The four required BSA/AML program pillars are internal controls, independent testing (audit), a designated BSA compliance officer, and training.

Under the Truth in Lending Act (TILA) and Regulation Z, the right of rescission applies to which type of transaction?

Answer: Non-purchase refinance secured by the consumer's primary dwelling

The three-day right of rescission applies to non-purchase credit transactions secured by the consumer's principal dwelling, such as refinances and HELOCs.

A compliance officer conducting a Fair Lending review finds that the bank's pricing model results in higher rates for a protected class even though lending policies appear neutral on their face. This best describes which legal theory?

Answer: Disparate impact

Disparate impact occurs when a facially neutral policy or practice disproportionately harms a protected class without business justification.

The Bank Secrecy Act requires financial institutions to retain records of funds transfers of $3,000 or more (the 'Travel Rule'). What information must 'travel' with the payment order?

Answer: Originator's name, address, and account number plus beneficiary's name and account number

The Travel Rule requires that specific originator and beneficiary identifying information accompany funds transfers of $3,000 or more to help law enforcement trace illicit funds.