Investigation & Remediation Procedures Flashcards
7 cards from real RCMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Investigation & Remediation Procedures flashcards as text
Which of the following BEST describes 'triage' in the context of compliance investigations?
Answer: Rapidly assessing incoming reports to prioritize and allocate investigative resources
Triage involves quickly evaluating reports to determine severity, credibility, and urgency so resources are allocated to the highest-priority matters first.
A compliance team is remediating an anti-money laundering (AML) failure. Which action would most directly strengthen the company's suspicious activity monitoring?
Answer: Enhancing transaction monitoring rules and alert thresholds based on identified gaps
Refining transaction monitoring rules targets the specific detection failure that allowed suspicious activity to go unnoticed.
Which of the following is an example of a 'detective control' in a compliance program?
Answer: Periodic compliance audits and monitoring reviews
Detective controls identify compliance failures after they occur, and periodic audits are designed to discover problems that have already happened.
When a compliance investigation concludes with no finding of wrongdoing, what is the MOST important next step?
Answer: Document the investigation closure, retain records per policy, and notify relevant stakeholders appropriately
Proper documentation of a closed investigation with no findings protects the organization and ensures records are available if the matter is later revisited.
What is the significance of a 'declination letter' from a regulatory agency following a self-disclosure?
Answer: It indicates the agency has decided not to pursue enforcement action, often reflecting credit for cooperation
A declination letter signals that the regulator will not pursue enforcement, typically acknowledging the company's cooperation and remediation efforts.
During a compliance investigation, which party should determine whether a report should be escalated to the board or audit committee?
Answer: Legal counsel and the chief compliance officer, based on materiality and governance protocols
Escalation decisions require legal and compliance leadership to assess materiality and governance obligations before elevating to the board.
Which of the following remediation activities is considered a 'preventive control' enhancement?
Answer: Adding mandatory dual-approval for wire transfers above a defined threshold
Requiring dual approval prevents a single individual from completing a high-risk transaction without oversight, stopping violations before they occur.