CRCM Certified Regulatory Compliance Manager MCQ 2 — Questions and Answers
Question 1: Under the Bank Secrecy Act (BSA), what is the threshold amount that triggers a Currency Transaction Report (CTR)?
- $5,000
- $10,000 (Correct answer)
- $25,000
- $50,000
Correct answer: $10,000
The BSA requires financial institutions to file a CTR for any currency transaction exceeding $10,000 in a single business day.
Question 2: Which federal agency is primarily responsible for enforcing the Equal Credit Opportunity Act (ECOA)?
- Federal Reserve Board
- Consumer Financial Protection Bureau (CFPB) (Correct answer)
- Office of the Comptroller of the Currency (OCC)
- Federal Deposit Insurance Corporation (FDIC)
Correct answer: Consumer Financial Protection Bureau (CFPB)
The CFPB has primary enforcement authority over ECOA for most financial institutions, prohibiting credit discrimination.
Question 3: A bank's compliance officer discovers that the institution's loan officers have been steering minority applicants toward higher-cost loan products. This practice is best described as:
- Red-lining
- Reverse red-lining
- Disparate treatment (Correct answer)
- Disparate impact
Correct answer: Disparate treatment
Steering minority applicants to inferior products based on their protected class characteristic is disparate treatment—intentional discriminatory action.
Question 4: Under the Community Reinvestment Act (CRA), which examination component evaluates a bank's record of making loans in its assessment area?
- Investment test
- Service test
- Lending test (Correct answer)
- Community development test
Correct answer: Lending test
The lending test is the most heavily weighted CRA component and evaluates the number and dollar amount of loans made within the assessment area.
Question 5: The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to provide customers with a privacy notice:
- Only when the customer requests one
- At account opening and annually thereafter (Correct answer)
- Every two years
- Only when sharing data with unaffiliated third parties
Correct answer: At account opening and annually thereafter
GLBA requires an initial privacy notice at account opening and annual notices to all existing customers describing information-sharing practices.
Question 6: Which regulation implements the Truth in Savings Act (TISA) and governs disclosure requirements for deposit accounts?
- Regulation B
- Regulation DD (Correct answer)
- Regulation E
- Regulation Z
Correct answer: Regulation DD
Regulation DD implements TISA and requires depository institutions to disclose terms and conditions of deposit accounts, including APY.
Question 7: A Suspicious Activity Report (SAR) must be filed within how many calendar days of the initial detection of facts that may constitute a violation?
- 15 days
- 30 days (Correct answer)
- 45 days
- 60 days
Correct answer: 30 days
Financial institutions must file a SAR within 30 calendar days of initial detection, or 60 days if no suspect is identified.
CRCM Certified Regulatory Compliance Manager MCQ 2
Under the Bank Secrecy Act (BSA), what is the threshold amount that triggers a Currency Transaction Report (CTR)?