AAP Compliance and Audit 2

Question 1

The unauthorized entry return rate threshold (using codes R05, R07, R10, R29, R51) that triggers NACHA scrutiny is:

Accepted Answer

0.5% of debit entries originated

Answer

The unauthorized return rate threshold is 0.5%—much stricter than the 15% overall threshold—because unauthorized entries indicate serious authorization failures.

Question 2

Regulation E primarily protects:

Accepted Answer

Consumers from unauthorized electronic fund transfers

Answer

Regulation E (Electronic Fund Transfer Act) establishes the rights of consumers and the responsibilities of financial institutions regarding unauthorized electronic fund transfers.

Question 3

Under Regulation E, a consumer must report an unauthorized transaction within what timeframe to receive maximum protection?

Accepted Answer

2 business days of learning of the loss or theft of an access device

Answer

Reporting within 2 business days of learning of a lost or stolen access device limits consumer liability to $50; waiting longer increases potential liability.

Question 4

BSA/AML requirements that apply to ACH transactions include:

Accepted Answer

Monitoring for suspicious activity and filing SARs when warranted

Answer

Financial institutions must monitor ACH transactions for suspicious activity patterns and file Suspicious Activity Reports (SARs) with FinCEN when warranted under BSA requirements.

Question 5

OFAC compliance in ACH processing requires financial institutions to:

Accepted Answer

Screen transactions against the SDN list and block or reject prohibited transactions

Answer

Financial institutions must screen ACH transaction parties against OFAC's Specially Designated Nationals (SDN) list and block or reject any transactions involving prohibited parties.

AAP - Accredited ACH Professional Practice Test

AAP - Accredited ACH Professional Practice Test

AAP Compliance and Audit 2