CTP Regulatory Compliance and Ethics 2

Question 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?

Accepted Answer

Section 1502 — Conflict Minerals

Answer

Section 302 — Corporate Responsibility

Answer

Section 619 — Volcker Rule

Answer

Section 165 — Enhanced Prudential Standards

Question 2

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

Accepted Answer

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

Answer

Reporting foreign employees' wages and benefits to the IRS

Answer

Calculating and paying foreign tax credits on repatriated earnings

Answer

Complying with local country data privacy laws when sharing account data

Question 3

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

Accepted Answer

Consumer electronic fund transfers including ATM and debit card transactions

Answer

Commercial wire transfers between corporate entities

Answer

International correspondent banking transfers between institutions

Answer

Large-value interbank settlements processed through Fedwire

Question 4

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

Accepted Answer

$10,000

Answer

$5,000

Answer

$7,500

Answer

$25,000

Question 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?

Accepted Answer

Section 326 — Verification of Identification

Answer

Section 311 — Special Measures

Answer

Section 352 — Anti-Money Laundering Programs

Answer

Section 314 — Cooperative Efforts to Deter Money Laundering

Question 6

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

Accepted Answer

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

Answer

FINRA sets monetary policy that determines borrowing costs for treasury operations

Answer

FINRA regulates over-the-counter derivatives trading required for hedging

Answer

FINRA administers federal deposit insurance protecting corporate bank deposits

Question 7

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

Accepted Answer

Wholesale funds transfers between businesses and financial institutions

Answer

Consumer electronic payments and debit card transactions

Answer

Check clearing and collection processes between banks

Answer

Letters of credit and international documentary collections