Regulatory Compliance Flashcards
6 cards from real APRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Regulatory Compliance flashcards as text
What is PCI DSS and why is it important for payment professionals?
Answer: Payment Card Industry Data Security Standard — a set of security requirements for organizations handling cardholder data
PCI DSS establishes 12 core security requirements that any organization processing, storing, or transmitting cardholder data must meet to protect against data breaches and fraud.
What is the Bank Secrecy Act (BSA) and its requirements?
Answer: A U.S. law requiring financial institutions to maintain records and file reports that help detect money laundering and financial crimes
The BSA requires financial institutions to file Currency Transaction Reports (CTRs), Suspicious Activity Reports (SARs), and maintain customer identification programs to combat money laundering.
What is KYC (Know Your Customer) in payment compliance?
Answer: A regulatory requirement to verify customer identity and assess risk to prevent fraud, money laundering, and terrorist financing
KYC regulations require payment companies to verify customer identities, understand their financial activities, and assess risk levels to prevent the payment system from being used for criminal purposes.
What is AML (Anti-Money Laundering) compliance?
Answer: Programs and procedures designed to detect and prevent the use of financial systems to disguise illegally obtained funds
AML compliance includes customer due diligence, transaction monitoring, suspicious activity reporting, and sanctions screening to prevent criminals from moving illicit funds through the payment system.
What are sanctions screening requirements for payment companies?
Answer: Checking transactions against government lists of prohibited individuals, entities, and countries to prevent illegal transfers
Payment companies must screen transactions against OFAC and other sanctions lists to ensure they don't process payments involving sanctioned individuals, entities, or countries.
What is Regulation E and how does it protect consumers?
Answer: A federal regulation establishing consumers' rights regarding electronic fund transfers including error resolution and unauthorized transactions
Regulation E protects consumers in electronic transactions by limiting liability for unauthorized transfers, requiring error resolution procedures, and mandating disclosure of terms for electronic banking services.