Bank Code Bank Code Regulations

Question 1

Which organization sets the rules governing ACH transactions and routing number usage in the US?

Accepted Answer

NACHA (National Automated Clearing House Association)

Answer

NACHA (now operating as Nacha) is the self-regulatory organization that establishes and enforces the rules governing ACH transactions and the use of routing numbers in the US.

Question 2

Under Nacha rules, how long does an Originating Depository Financial Institution (ODFI) have to initiate a reversal of an erroneous ACH entry?

Accepted Answer

5 banking days

Answer

Under Nacha rules, an ODFI has up to 5 banking days from the settlement date of the original entry to initiate a reversing entry.

Question 3

Which federal regulation governs consumer electronic fund transfers including ACH direct deposit?

Accepted Answer

Regulation E

Answer

Regulation E, implementing the Electronic Fund Transfer Act (EFTA), governs consumer electronic fund transfers including ACH direct deposits and debit card transactions.

Question 4

What is the Bank Secrecy Act (BSA) requirement related to large wire transfers?

Accepted Answer

Banks must report wire transfers over $10,000 using a CTR (Currency Transaction Report)

Answer

Under the Bank Secrecy Act, banks must file a Currency Transaction Report (CTR) for cash transactions over $10,000, including related wire transfers.

Question 5

Under the Dodd-Frank Act, the CFPB has authority to regulate which payment-related activities?

Accepted Answer

Consumer financial products and services including payment systems and electronic transfers

Answer

The CFPB has broad authority under Dodd-Frank to regulate consumer financial products and services including payment systems, electronic transfers, and remittances.

Bank Code Practice Test

Bank Code Practice Test

Bank Code Bank Code Regulations