APRP Regulatory Compliance 2 — Questions and Answers
Question 1: Under the Bank Secrecy Act (BSA), what is the minimum threshold for filing a Currency Transaction Report (CTR)?
- $5,000
- $10,000 (Correct answer)
- $25,000
- $50,000
Correct answer: $10,000
The BSA requires financial institutions to file a CTR for cash transactions exceeding $10,000 in a single business day.
Question 2: Which regulation specifically governs electronic fund transfers for consumers in the United States?
- Regulation E (Correct answer)
- Regulation Z
- Regulation CC
- Regulation D
Correct answer: Regulation E
Regulation E implements the Electronic Fund Transfer Act and establishes consumer rights and protections for EFTs.
Question 3: A payments company fails to complete required due diligence on a high-risk merchant. Under which compliance framework is this most directly a violation?
- PCI DSS
- AML/BSA requirements (Correct answer)
- NACHA Operating Rules
- Regulation Z
Correct answer: AML/BSA requirements
AML/BSA requirements mandate Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) for high-risk entities.
Question 4: What does the Durbin Amendment to the Dodd-Frank Act primarily regulate?
- Credit card interest rate caps
- Debit card interchange fees (Correct answer)
- Merchant discount rates for credit cards
- ATM surcharge fees
Correct answer: Debit card interchange fees
The Durbin Amendment caps debit interchange fees for large issuers and prohibits exclusive network routing arrangements.
Question 5: Which federal agency has primary examination authority over non-bank payment processors for consumer protection compliance?
- OCC
- FDIC
- CFPB (Correct answer)
- Federal Reserve
Correct answer: CFPB
The Consumer Financial Protection Bureau (CFPB) has supervisory authority over large non-bank payment processors for consumer protection laws.
Question 6: Under PCI DSS, which requirement mandates that cardholder data stored must be rendered unreadable anywhere it is stored?
- Requirement 3 (Correct answer)
- Requirement 6
- Requirement 8
- Requirement 10
Correct answer: Requirement 3
PCI DSS Requirement 3 covers protection of stored cardholder data, including encryption, hashing, or tokenization.
Question 7: A U.S. payments firm processes transactions involving a Cuban national. Which regulatory body enforces the sanctions rules that apply?
- FinCEN
- OFAC (Correct answer)
- OCC
- FFIEC
Correct answer: OFAC
The Office of Foreign Assets Control (OFAC) administers and enforces U.S. economic and trade sanctions, including the Cuba embargo.
APRP Regulatory Compliance 2
Under the Bank Secrecy Act (BSA), what is the minimum threshold for filing a Currency Transaction Report (CTR)?