CrFA Regulatory Compliance 4

Question 1

Under FinCEN's Customer Due Diligence (CDD) Rule, which individuals must a covered financial institution identify as beneficial owners of a legal entity customer?

Accepted Answer

Each individual owning 25% or more, plus one individual with significant control

Answer

The CDD Rule uses an ownership prong of 25% or more and a control prong of one individual with significant managerial control.

Question 2

A public company employee believes they suffered retaliation for reporting securities fraud internally. Where and within what period must a SOX Section 806 complaint be filed?

Accepted Answer

With OSHA within 180 days of the violation

Answer

SOX Section 806 complaints must be filed with OSHA, part of the Department of Labor, within 180 days.

Question 3

According to Digital Realty Trust v. Somers (2018), what must an employee have done to qualify for Dodd-Frank anti-retaliation protection?

Accepted Answer

Reported the suspected violation to the SEC

Answer

The Supreme Court held that Dodd-Frank anti-retaliation protection requires reporting to the SEC, unlike SOX Section 806.

Question 4

Under DOJ's Corporate Enforcement and Voluntary Self-Disclosure Policy, which combination creates a presumption of declination absent aggravating circumstances?

Accepted Answer

Voluntary self-disclosure, full cooperation, and timely and appropriate remediation

Answer

DOJ policy provides a presumption of declination when a company self-discloses, fully cooperates, and remediates, subject to aggravating factors.

Question 5

Under Chapter 8 of the U.S. Sentencing Guidelines, how can an effective compliance and ethics program affect an organization convicted of a federal offense?

Accepted Answer

It can reduce the organization's culpability score and resulting fine

Answer

An effective compliance and ethics program can lower the culpability score, reducing the fine range.

CrFA - Certified Forensic Accountant Practice Test

CrFA - Certified Forensic Accountant Practice Test

CrFA Regulatory Compliance 4