Practice Test Geeks(RCC) Regulatory Compliance Certification Practice Test
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Legal and Regulatory Frameworks Flashcards

7 cards from real RCC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Legal and Regulatory Frameworks flashcards as text

  1. A financial institution is subject to both the Bank Secrecy Act (BSA) and state money transmission laws. Which principle governs when these two regulatory regimes impose different requirements?

    Answer: Federal BSA requirements set a floor; states may impose stricter requirements

    The BSA establishes minimum federal AML requirements, and states may enact stricter money transmission laws without being preempted.

  2. Which element distinguishes a 'per se' antitrust violation from a 'rule of reason' analysis under the Sherman Act?

    Answer: Per se violations are automatically illegal without need to assess competitive effects

    Per se violations (e.g., price-fixing, bid-rigging) are conclusively presumed illegal without weighing pro- vs. anti-competitive effects.

  3. Under the Foreign Corrupt Practices Act (FCPA), which defense is available to a company that made payments to a foreign official?

    Answer: The payments were lawful under the written laws of the foreign country

    The FCPA's 'local law' affirmative defense applies when the payment was expressly permitted under the written laws of the foreign official's country.

  4. Which concept in administrative law allows a court to set aside agency action that is 'arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law'?

    Answer: The hard look doctrine / APA Section 706 review

    APA Section 706(2)(A) authorizes courts to set aside arbitrary and capricious agency actions, and courts apply a 'hard look' to ensure reasoned decision-making.

  5. Under the Dodd-Frank Act's whistleblower provisions, what is the minimum percentage of sanctions an eligible whistleblower may receive for original information leading to a successful SEC enforcement action exceeding $1 million?

    Answer: 10%

    Dodd-Frank Section 922 provides whistleblowers 10–30% of sanctions collected in qualifying SEC enforcement actions over $1 million.

  6. A company's compliance program is evaluated by the DOJ during a criminal investigation. Which factor is MOST critical in demonstrating an 'effective' compliance program under the USSG guidelines?

    Answer: High-level personnel assigned responsibility and adequate resources to implement the program

    USSG §8B2.1 requires that high-level personnel be assigned overall responsibility and that the program be given sufficient resources to be effective.

  7. Which federal statute imposes civil and criminal liability on any person who knowingly presents a false claim for payment to the federal government?

    Answer: The False Claims Act

    The False Claims Act (31 U.S.C. §§ 3729–3733) imposes treble damages and per-claim penalties for knowingly submitting false claims to federal agencies.