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
Which international standard provides a framework specifically for anti-bribery management systems?
Answer: ISO 37001
ISO 37001 specifies requirements for establishing and maintaining an anti-bribery management system to prevent, detect, and address bribery.
Under the SEC's Regulation Fair Disclosure (Reg FD), what must a public company do if it inadvertently discloses material nonpublic information to a select group?
Answer: Publicly disclose the information promptly
Reg FD requires that when material nonpublic information is inadvertently disclosed, the company must make public disclosure promptly — as soon as reasonably practicable.
A financial institution files a Suspicious Activity Report (SAR) with FinCEN. Under BSA regulations, how long must the institution retain a copy of the SAR?
Answer: 5 years
BSA regulations require financial institutions to retain SARs and supporting documentation for five years from the date of filing.
In the context of the three lines of defense model, which line is responsible for monitoring and testing the effectiveness of risk management controls?
Answer: Third line (internal audit)
The third line — internal audit — provides independent assurance by evaluating whether the first and second lines' controls are effective and operating as intended.
Which U.S. environmental law establishes the framework for regulating the disposal of solid and hazardous waste?
Answer: Resource Conservation and Recovery Act (RCRA)
RCRA provides EPA with authority to control hazardous waste generation, transportation, treatment, storage, and disposal from cradle to grave.
A compliance officer must assess whether a new product falls under CFPB jurisdiction. Which factor is most determinative?
Answer: Whether the product is a 'consumer financial product or service' as defined by Dodd-Frank
The CFPB's jurisdiction turns on whether the product or service qualifies as a 'consumer financial product or service' under Title X of Dodd-Frank.
Which principle in the OECD Guidelines for Multinational Enterprises addresses the responsibility of companies to respect human rights?
Answer: Chapter IV — Human Rights
Chapter IV of the OECD Guidelines for Multinational Enterprises addresses human rights, incorporating the UN Guiding Principles on Business and Human Rights.