CCSR - Certified Customer Service Representative Compliance and Banking Basics Questions and Answers

Question 1

A customer makes several cash deposits over a few days, with each deposit being $9,500. As a customer service representative, you notice this pattern. This activity is a potential indicator of:

Accepted Answer

Structuring, an attempt to evade Currency Transaction Report (CTR) requirements.

Answer

The Bank Secrecy Act (BSA) requires banks to file a Currency Transaction Report (CTR) for cash transactions exceeding $10,000. Structuring, also known as 'smurfing,' is the illegal practice of breaking up a single large transaction into smaller ones to stay below this reporting threshold and avoid scrutiny. A CSR's role is to recognize such patterns and report them internally per the bank's policy.

Question 2

Under the Gramm-Leach-Bliley Act (GLBA), which of the following is considered Non-Public Personal Information (NPI) that a CSR has a duty to protect?

Accepted Answer

A customer's account balance and social security number.

Answer

The Gramm-Leach-Bliley Act (GLBA) mandates that financial institutions protect their customers' Non-Public Personal Information (NPI). NPI includes any personally identifiable financial information, such as account numbers, balances, social security numbers, and transaction history. The other options are public information not covered by GLBA's privacy rule.

Question 3

What is the primary purpose of the Customer Identification Program (CIP) that banks are required to implement when opening a new account?

Accepted Answer

To form a reasonable belief that the bank knows the true identity of the customer.

Answer

The Customer Identification Program (CIP) is a requirement of the USA PATRIOT Act. Its main purpose is to verify the identity of individuals opening accounts to help combat money laundering, terrorism financing, and other financial crimes.

Question 4

A person calls claiming their mother is a customer and is too ill to call herself. The person asks for the mother's checking account balance to ensure a check will clear. The caller is not listed on the account. What is the most compliant action for the CSR to take?

Accepted Answer

Politely state that due to privacy regulations, you can only share account information with the authorized account holder.

Answer

The Gramm-Leach-Bliley Act (GLBA) strictly prohibits sharing Non-Public Personal Information (NPI) with unauthorized individuals, regardless of their relationship to the customer. The CSR must deny the request to remain compliant and protect the customer's privacy, even if the caller's intent seems harmless.

Question 5

A customer reports that their debit card was stolen yesterday and that two unauthorized transactions of $150 each have been posted to their account today. They report it immediately upon discovery. According to Regulation E, what is the customer's maximum liability?

Accepted Answer

$50

Answer

Regulation E (Electronic Fund Transfer Act) limits a consumer's liability for unauthorized debit card transactions. If the customer reports the loss or theft of their card within two business days of learning about it, their maximum liability is capped at $50.

CCSR - Certified Customer Service Representative Practice Test

CCSR - Certified Customer Service Representative Practice Test

CCSR - Certified Customer Service Representative Compliance and Banking Basics Questions and Answers