FREE Certified Regulatory Compliance Manager MCQ Questions and Answers
The cash drawer of Teller #1 has a mysterious $7,000 cash deficit, which the branch manager discovers. Which of the below activities is required of the bank?
If a branch manager discovers an unexplained $7,000 cash shortage in Teller #1's cash drawer, the bank must take appropriate actions, and one of those actions is to file a Suspicious Activity Report (SAR).
Which of the following should have the primary responsibility for managing the inherent compliance risk in a bank?
The primary responsibility for overseeing a bank's inherent compliance risk lies with the Board of Directors. The Board of Directors is responsible for the overall governance and strategic direction of a bank, including managing risk. Compliance risk refers to the potential for violations of laws, regulations, and internal policies and procedures.
Regulation E disclosures MUST be given at the time of account opening when creating a deposit account online, or:
When opening a deposit account online, Regulation E disclosures must be provided either at the time of account opening or before the first Electronic Fund Transfer (EFT) occurs. Regulation E, which is part of the Electronic Fund Transfer Act (EFTA) in the United States, establishes the rights and responsibilities of consumers and financial institutions regarding electronic transfers of funds.
Recently, a compliance specialist learned that the bank had failed to submit and disclose a complete covered agreement as required by the CRA Sunshine Act. What has to be supplied in order to guarantee accurate reporting going forward?
The CRA Sunshine Act requires certain financial institutions to report and disclose information about covered agreements, which are agreements related to the institution's CRA activities. This includes agreements for grants, loans, or other forms of assistance provided to fulfill CRA obligations.
A corporation that would become a financial subsidiary of First State Bank, a state nonmember institution, is planned for acquisition. First State will inform the FDIC of its intended purchase via a notification. Which of the following considerations would NOT be considered by the FDIC when deciding whether to acquire the bank?
First State Bank's asset size would NOT be relevant to the FDIC's consideration of the bank's acquisition in this scenario. When a state nonmember institution, like First State Bank, plans to purchase a company that would become its financial subsidiary, the FDIC (Federal Deposit Insurance Corporation) is involved in the review and approval process.
With the exception of the following circumstances, a borrower may cancel a loan agreement:
TILA does not grant the right to rescind for loans that are primarily for business purposes. In the situation you mentioned, where a line of credit is used for the borrower's business and secured by their primary dwelling, the borrower does not have the right to rescind the loan agreement.
Congress limited financial organizations' ability to share consumer information with other parties. By the law, financial institutions must also provide disclosures when starting a client relationship and then once a year after that.
The correct answer is the Gramm-Leach-Bliley Act of 1999. Congress enacted the Gramm-Leach-Bliley Act (GLBA) in 1999 to address various aspects of the financial services industry, including the disclosure of customer information by financial institutions.