Practice Test Geeks(RCMS) Registered Compliance Management Specialist Certification Practice Test
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Regulatory Frameworks & Standards 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 Regulatory Frameworks & Standards flashcards as text

  1. Which U.S. law requires publicly traded companies to establish internal controls over financial reporting and have management assess their effectiveness annually?

    Answer: Sarbanes-Oxley Act Section 404

    SOX Section 404 mandates that management assess and report on the effectiveness of internal controls over financial reporting each year.

  2. In the context of AML compliance, what does the term 'layering' refer to?

    Answer: Disguising the trail of illicit funds through complex transactions

    Layering is the second stage of money laundering, involving complex transactions designed to obscure the audit trail of illicit funds.

  3. Which federal regulation requires financial institutions to verify the identity of beneficial owners of legal entity customers?

    Answer: FinCEN Customer Due Diligence Rule

    FinCEN's CDD Rule, effective 2018, requires covered financial institutions to identify and verify beneficial owners owning 25% or more of legal entity customers.

  4. The NIST Cybersecurity Framework (CSF) organizes its core functions in which order?

    Answer: Identify, Protect, Detect, Respond, Recover

    The original NIST CSF core consists of five functions: Identify, Protect, Detect, Respond, and Recover (CSF 2.0 added Govern).

  5. Under the Health Insurance Portability and Accountability Act (HIPAA), which rule specifically governs the security of electronic protected health information (ePHI)?

    Answer: Security Rule

    The HIPAA Security Rule establishes national standards to protect ePHI through administrative, physical, and technical safeguards.

  6. Which organization publishes the Principles for Responsible Investment (PRI) framework that guides ESG compliance for institutional investors?

    Answer: United Nations-supported initiative

    The PRI is a UN-supported network of investors that develops principles promoting the incorporation of ESG factors into investment decisions.

  7. A regulated entity receives conflicting guidance from two different federal regulators claiming jurisdiction. This situation is best characterized as:

    Answer: Jurisdictional overlap

    Jurisdictional overlap occurs when multiple regulators claim authority over the same entity or conduct, creating compliance ambiguity.