CRCM Trivia 5

Question 1

What is the maximum amount the FDIC insures per depositor, per insured bank, for each account ownership category?

Accepted Answer

$250,000

Answer

The FDIC insures deposits up to $250,000 per depositor, per insured institution, for each account ownership category, a limit permanently increased by the Dodd-Frank Act.

Question 2

Under RESPA, which practice is strictly prohibited where a settlement service provider receives anything of value for referring business to another provider?

Accepted Answer

Kickbacks and unearned fees

Answer

RESPA Section 8 prohibits kickbacks and unearned fees — giving or receiving anything of value for the referral of settlement service business.

Question 3

Which FinCEN rule requires covered financial institutions to identify and verify the identity of the beneficial owners of legal entity customers?

Accepted Answer

Customer Due Diligence (CDD) Rule

Answer

FinCEN's Customer Due Diligence Rule, effective May 2018, requires financial institutions to identify beneficial owners with 25% or more ownership and one control person for legal entities.

Question 4

The Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) authority was granted to the CFPB by which legislation?

Accepted Answer

Dodd-Frank Wall Street Reform and Consumer Protection Act

Answer

The Dodd-Frank Act of 2010 granted the CFPB authority to prohibit unfair, deceptive, or abusive acts or practices, adding 'abusive' to the long-standing UDAP standard.

Question 5

Under Regulation E, within how many business days must a financial institution complete its investigation of a reported error on an electronic fund transfer?

Accepted Answer

10 business days

Answer

Regulation E requires financial institutions to investigate and resolve EFT error claims within 10 business days, with an extension to 45 days if a provisional credit is provided.

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM - Certified Regulatory Compliance Manager Practice Test

CRCM Trivia 5