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Regulatory Compliance and Ethics Flashcards

7 cards from real CTP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Regulatory Compliance and Ethics flashcards as text

  1. Which provision of the Dodd-Frank Act requires SEC-registered companies to disclose whether their products contain minerals from conflict zones in the Democratic Republic of Congo?

    Answer: Section 1502 — Conflict Minerals

    Dodd-Frank Section 1502 requires SEC registrants to disclose whether their products contain conflict minerals originating from the DRC or adjoining countries.

  2. What is the primary compliance concern for U.S. multinational corporations under FATCA (Foreign Account Tax Compliance Act)?

    Answer: Ensuring foreign financial institutions identify and report U.S. account holders to the IRS

    FATCA requires foreign financial institutions to identify U.S. account holders and report their account information to the IRS, preventing offshore tax evasion.

  3. Under the Electronic Fund Transfer Act (Regulation E), which type of transaction is primarily covered?

    Answer: Consumer electronic fund transfers including ATM and debit card transactions

    Regulation E covers consumer EFTs including ATM withdrawals, direct deposits, and debit card purchases, providing specific protections for individual consumers.

  4. What is the Currency Transaction Report (CTR) filing threshold under the Bank Secrecy Act?

    Answer: $10,000

    Financial institutions must file a CTR for any cash transaction or series of related transactions exceeding $10,000 in a single business day.

  5. Which section of the USA PATRIOT Act requires financial institutions to establish Customer Identification Programs (CIP) to verify the identity of new account holders?

    Answer: Section 326 — Verification of Identification

    Section 326 of the USA PATRIOT Act requires financial institutions to implement CIPs that verify the identity of individuals and entities opening new accounts.

  6. What is the primary compliance significance of the Financial Industry Regulatory Authority (FINRA) for corporate treasury operations?

    Answer: FINRA supervises broker-dealers that treasury departments use to execute securities transactions

    FINRA is a self-regulatory organization that oversees broker-dealers and their registered representatives, who frequently facilitate securities transactions on behalf of corporate treasury departments.

  7. Under UCC Article 4A, what type of transaction is specifically governed?

    Answer: Wholesale funds transfers between businesses and financial institutions

    UCC Article 4A governs wholesale wire transfers (funds transfers) between businesses and financial institutions, defining the rights and obligations of all parties involved.