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

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

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

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

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

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

Question 4

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

Accepted Answer

$10,000

Answer

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

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

Certified Treasury Professional Exam Practice Test

Certified Treasury Professional Exam Practice Test

CTP Regulatory Compliance and Ethics 2