Regulatory Compliance Flashcards

Which Sarbanes-Oxley provision requires the CEO and CFO to personally certify the accuracy of each periodic report filed with the SEC?

Answer: Section 302

Section 302 requires principal officers to certify that periodic reports are accurate and that disclosure controls are effective.

A bank detects suspicious activity and has identified a suspect. Within what period must it generally file a Suspicious Activity Report (SAR)?

Answer: 30 calendar days of initial detection

SARs are due within 30 calendar days of initial detection, extendable to 60 days only when no suspect has been identified.

A car dealer receives $12,500 in cash from a single buyer. Which filing obligation applies?

Answer: IRS/FinCEN Form 8300 within 15 days

Non-financial trades or businesses receiving more than $10,000 in cash must file Form 8300 within 15 days.

Under the FCPA anti-bribery provisions, which payment may qualify for the narrow statutory exception?

Answer: A small facilitating payment to expedite routine governmental action such as processing a visa

The FCPA excepts facilitating payments for routine, non-discretionary governmental actions.

Under the Dodd-Frank SEC whistleblower program, what award range applies when a whistleblower's original information leads to sanctions exceeding $1 million?

Answer: 10% to 30% of monetary sanctions collected

Eligible whistleblowers receive 10% to 30% of sanctions collected in actions exceeding $1 million.

An employee shreds accounting records to impede an anticipated SEC investigation. Which SOX section sets a maximum penalty of 20 years imprisonment for this conduct?

Answer: Section 802

Section 802 (18 U.S.C. 1519) criminalizes destruction or falsification of records to obstruct federal investigations, with up to 20 years imprisonment.

Under OFAC's 50 Percent Rule, which entity is considered blocked even though it does not appear on the SDN list?

Answer: An entity owned 50% or more, in aggregate, by one or more blocked persons

OFAC treats entities owned 50% or more, directly or indirectly and in aggregate, by blocked persons as blocked.