CCT Compliance Oversight Agencies 2 — Questions and Answers
Question 1: Which agency enforces the Bank Secrecy Act (BSA) and oversees anti-money laundering compliance for financial institutions?
- OCC
- FinCEN (Correct answer)
- FDIC
- NCUA
Correct answer: FinCEN
FinCEN (Financial Crimes Enforcement Network) administers and enforces the BSA, requiring financial institutions to maintain AML programs.
Question 2: The Office of Foreign Assets Control (OFAC) operates under which federal department?
- Department of Justice
- Department of Commerce
- Department of the Treasury (Correct answer)
- Department of Homeland Security
Correct answer: Department of the Treasury
OFAC is a division of the U.S. Department of the Treasury responsible for administering economic and trade sanctions.
Question 3: Which agency has primary examination authority over federally chartered credit unions?
- FDIC
- OCC
- Federal Reserve
- NCUA (Correct answer)
Correct answer: NCUA
The National Credit Union Administration (NCUA) charters, insures, and supervises federal credit unions.
Question 4: A compliance officer discovers their firm's swap dealer is not properly reporting to a swap data repository. Which regulator should they notify first?
- SEC
- CFTC (Correct answer)
- FINRA
- OCC
Correct answer: CFTC
The CFTC regulates swap dealers and mandates swap data repository reporting under Dodd-Frank.
Question 5: Which body issues the Uniform Standards of Professional Appraisal Practice (USPAP), which appraisers must follow under federal financial institution regulations?
- HUD
- The Appraisal Foundation (Correct answer)
- CFPB
- OCC
Correct answer: The Appraisal Foundation
The Appraisal Foundation, authorized by FIRREA, issues USPAP and sets minimum qualification criteria for appraisers.
Question 6: Which agency enforces the Equal Credit Opportunity Act (ECOA) for non-bank mortgage lenders?
- HUD
- OCC
- CFPB (Correct answer)
- Federal Reserve
Correct answer: CFPB
The CFPB has enforcement authority over ECOA for non-depository mortgage lenders and other non-bank financial entities.
Question 7: The Financial Industry Regulatory Authority (FINRA) derives its authority primarily from which source?
- Congressional statute
- SEC oversight and delegation (Correct answer)
- Federal Reserve Board
- Department of Justice authorization
Correct answer: SEC oversight and delegation
FINRA is a self-regulatory organization (SRO) operating under SEC oversight, not directly created by Congress.
CCT Compliance Oversight Agencies 2
Which agency enforces the Bank Secrecy Act (BSA) and oversees anti-money laundering compliance for financial institutions?