RCC Legal and Regulatory Frameworks 3

Question 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?

Accepted Answer

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

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 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'?

Accepted Answer

The hard look doctrine / APA Section 706 review

Answer

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.

Question 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?

Accepted Answer

10%

Answer

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

(RCC) Regulatory Compliance Certification Practice Test

(RCC) Regulatory Compliance Certification Practice Test

RCC Legal and Regulatory Frameworks 3