Regulatory Compliance Flashcards

Under the Bank Secrecy Act (BSA), what is the minimum threshold for filing a Currency Transaction Report (CTR)?

Answer: $10,000

The BSA requires financial institutions to file a CTR for cash transactions exceeding $10,000 in a single business day.

Which regulation specifically governs electronic fund transfers for consumers in the United States?

Answer: Regulation E

Regulation E implements the Electronic Fund Transfer Act and establishes consumer rights and protections for EFTs.

A payments company fails to complete required due diligence on a high-risk merchant. Under which compliance framework is this most directly a violation?

Answer: AML/BSA requirements

AML/BSA requirements mandate Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) for high-risk entities.

What does the Durbin Amendment to the Dodd-Frank Act primarily regulate?

Answer: Debit card interchange fees

The Durbin Amendment caps debit interchange fees for large issuers and prohibits exclusive network routing arrangements.

Which federal agency has primary examination authority over non-bank payment processors for consumer protection compliance?

Answer: CFPB

The Consumer Financial Protection Bureau (CFPB) has supervisory authority over large non-bank payment processors for consumer protection laws.

Under PCI DSS, which requirement mandates that cardholder data stored must be rendered unreadable anywhere it is stored?

Answer: Requirement 3

PCI DSS Requirement 3 covers protection of stored cardholder data, including encryption, hashing, or tokenization.

A U.S. payments firm processes transactions involving a Cuban national. Which regulatory body enforces the sanctions rules that apply?

Answer: OFAC

The Office of Foreign Assets Control (OFAC) administers and enforces U.S. economic and trade sanctions, including the Cuba embargo.