Practice Test Geeks(CAM) Certified Account Manager Practice Test
← All CAM Flashcard Decks

Regulatory Compliance Flashcards

7 cards from real CAM 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 Compliance flashcards as text

  1. The Beneficial Ownership Rule, effective May 2018, requires covered financial institutions to identify and verify the identity of beneficial owners who own what minimum percentage of a legal entity customer?

    Answer: 25%

    FinCEN's Beneficial Ownership Rule requires identifying all natural persons who own 25% or more of a legal entity customer.

  2. A compliance audit finds that the institution is not providing adverse action notices to declined applicants within 30 days. This violates which regulation?

    Answer: Regulation B (ECOA)

    Regulation B requires creditors to notify applicants of credit denials and the reasons within 30 days of receiving a completed application.

  3. Under the Sarbanes-Oxley Act (SOX), Section 302 requires that public company CEOs and CFOs:

    Answer: Certify the accuracy of financial reports personally

    SOX Section 302 mandates that the CEO and CFO personally certify that financial statements fairly represent the company's financial condition.

  4. The 'opt-in' requirement under Regulation E means that financial institutions must obtain a customer's affirmative consent before:

    Answer: Charging overdraft fees on ATM and one-time debit card transactions

    Regulation E's opt-in rule prohibits institutions from charging overdraft fees on ATM and everyday debit card transactions unless the customer has explicitly enrolled.

  5. Which type of BSA/AML program element requires financial institutions to provide ongoing education to employees about money laundering red flags?

    Answer: Training

    Training is one of the five pillars of an effective AML program, ensuring employees can recognize and report suspicious activity.

  6. A bank account manager receives a gift worth $150 from a commercial client after closing a large loan. Under most bank ethics policies, this should be:

    Answer: Disclosed to compliance and likely declined or returned

    Most bank ethics policies require employees to disclose and often decline gifts above a de minimis threshold to prevent conflicts of interest.

  7. The Home Mortgage Disclosure Act (HMDA) primarily requires lenders to collect and report data in order to:

    Answer: Identify potential discriminatory lending patterns

    HMDA data enables regulators and the public to identify whether lenders are serving all segments of the community and detect fair lending violations.