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Regulatory Compliance Auditing Flashcards

7 cards from real CBA 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 Auditing flashcards as text

  1. Under the Bank Secrecy Act (BSA), what is the minimum transaction amount that triggers a Currency Transaction Report (CTR)?

    Answer: $10,000

    The BSA requires banks to file a CTR for any cash transaction exceeding $10,000 in a single business day.

  2. Which regulatory body is primarily responsible for enforcing the Community Reinvestment Act (CRA) for national banks?

    Answer: OCC

    The Office of the Comptroller of the Currency (OCC) is the primary federal regulator responsible for CRA examinations of national banks.

  3. A bank's compliance audit reveals that loan officers have been redlining minority neighborhoods. Which law is most directly violated?

    Answer: Equal Credit Opportunity Act

    Redlining violates the Equal Credit Opportunity Act (ECOA), which prohibits discrimination in credit decisions based on race or national origin.

  4. What does the term 'structuring' refer to in the context of BSA/AML compliance?

    Answer: Breaking up transactions to avoid CTR reporting thresholds

    Structuring (also called 'smurfing') is the illegal practice of breaking up large cash transactions to stay below the $10,000 CTR reporting threshold.

  5. Which examination rating system do federal banking regulators use to evaluate bank safety and soundness, including compliance components?

    Answer: CAMELS

    CAMELS (Capital, Assets, Management, Earnings, Liquidity, Sensitivity) is the standardized examination rating system used by federal bank regulators.

  6. Under Regulation E, what is the maximum liability for a consumer who reports an unauthorized electronic funds transfer within 2 to 60 days of receiving their statement?

    Answer: $500

    Under Regulation E, if the consumer reports within 2 to 60 days, liability is capped at $500 for unauthorized EFT transactions.

  7. A compliance auditor discovers that a bank failed to provide the required HMDA data to regulators. What is the primary risk this finding creates?

    Answer: Regulatory sanctions and fair lending scrutiny

    Failure to file Home Mortgage Disclosure Act (HMDA) data exposes banks to regulatory sanctions and heightened fair lending examination scrutiny.