CRM Ethical Standards & Professional Conduct 2

Question 1

Which of the following actions would constitute a breach of client confidentiality under CRM ethical standards?

Accepted Answer

Disclosing client financial details to a non-affiliated third party without consent

Answer

Disclosing identifiable client financial information to unaffiliated third parties without consent is a direct breach of the confidentiality obligation.

Question 2

What does 'due diligence' require of a CRM professional when onboarding a new client?

Accepted Answer

Thoroughly verifying the client's identity, financial background, and needs before making recommendations

Answer

Due diligence requires a CRM professional to gather complete and accurate information about the client before any recommendation is made.

Question 3

When a CRM professional suspects a client may be involved in money laundering, the CORRECT action under U.S. regulations is to:

Accepted Answer

File a Suspicious Activity Report (SAR) with FinCEN without tipping off the client

Answer

U.S. Bank Secrecy Act regulations require filing a SAR with FinCEN and prohibit alerting the client (tipping off) about the report.

Question 4

Professional competency in the CRM framework requires that a relationship manager:

Accepted Answer

Continuously update their knowledge and skills through ongoing education

Answer

Competency is maintained through continuous professional development so that the CRM can provide current, accurate advice to clients.

Question 5

Which regulatory body governs anti-money laundering (AML) compliance for financial institutions and their CRM professionals in the U.S.?

Accepted Answer

FinCEN

Answer

The Financial Crimes Enforcement Network (FinCEN) enforces AML regulations including SAR filing requirements under the Bank Secrecy Act.

CRM - Certified Relationship Manager Practice Test

CRM - Certified Relationship Manager Practice Test

CRM Ethical Standards & Professional Conduct 2