CSC Regulatory Compliance & Guidelines 3

Question 1

Under the Dodd-Frank Wall Street Reform Act, which agency has primary oversight of systemic risk among large financial institutions?

Accepted Answer

Financial Stability Oversight Council (FSOC)

Answer

The Financial Stability Oversight Council (FSOC) was created by Dodd-Frank specifically to monitor and address systemic risks to U.S. financial stability.

Question 2

An organization's compliance program includes a hotline for reporting violations, but employees rarely use it. According to the DOJ's compliance program guidance, what is the most likely root cause?

Accepted Answer

Lack of genuine non-retaliation culture and fear of consequences

Answer

The DOJ's guidance emphasizes that hotline underuse typically reflects employees' fear of retaliation, indicating a culture that does not genuinely support reporting.

Question 3

Which ISO standard provides a framework specifically for compliance management systems?

Accepted Answer

ISO 37301

Answer

ISO 37301 (formerly ISO 19600) is the international standard specifically designed for compliance management systems.

Question 4

A consultant reviewing a financial firm's AML controls finds that customer due diligence (CDD) files are incomplete for 15% of high-risk customers. Under FinCEN's CDD rule, what is the immediate priority?

Accepted Answer

Remediate the gaps and conduct enhanced due diligence on identified high-risk accounts

Answer

The immediate priority is to remediate CDD gaps and apply enhanced due diligence to high-risk customers to meet FinCEN's CDD rule requirements.

Question 5

Under OSHA's General Duty Clause, employers are required to provide a workplace free from recognized hazards. Which of the following best describes a 'recognized hazard'?

Accepted Answer

A hazard known to the employer or the industry, even if not covered by a specific OSHA standard

Answer

A recognized hazard under the General Duty Clause includes hazards known to the employer or the industry, regardless of whether a specific OSHA standard exists.

(CSC) Certified Senior Consultant Practice Test

(CSC) Certified Senior Consultant Practice Test

CSC Regulatory Compliance & Guidelines 3