CBP - Certified Banking Professional Banking Regulations and Compliance Questions and Answers

Question 1

A bank's marketing department plans to launch a social media campaign for a new home equity line of credit (HELOC).
The advertisement prominently features an attractive introductory Annual Percentage Rate (APR).
According to Regulation Z of the Truth in Lending Act (TILA), which of the following is also required to be included in the advertisement to avoid being misleading?

Accepted Answer

The period the introductory rate is in effect and the APR that will apply after the introductory period.

Answer

The bank's asset size and primary regulator.

Answer

A statement that rates are subject to change without notice.

Answer

The contact information for the bank's compliance officer.

Question 2

A small community bank is undergoing a Community Reinvestment Act (CRA) examination. Examiners will assess the bank's performance primarily based on which of the following?

Accepted Answer

How well the bank is meeting the credit needs of its entire community, including low- and moderate-income neighborhoods.

Answer

The number of new deposit accounts opened in the last year.

Answer

The bank's profitability and return on equity.

Answer

The total dollar amount of commercial loans originated, regardless of location.

Question 3

Under the Bank Secrecy Act (BSA), a bank must file a Suspicious Activity Report (SAR) in which of the following scenarios?

Accepted Answer

A customer who is a known local business owner frequently makes large, structured cash deposits that are just under the reporting threshold.

Answer

A customer deposits $11,000 in cash in a single transaction.

Answer

A customer applies for a mortgage loan with a low credit score.

Answer

A long-time customer withdraws a large sum for a down payment on a house.

Question 4

Which of the following is a primary requirement of the Gramm-Leach-Bliley Act (GLBA) Safeguards Rule for financial institutions?

Accepted Answer

To develop, implement, and maintain a comprehensive written information security program.

Answer

To report all currency transactions over $5,000 to the Financial Crimes Enforcement Network (FinCEN).

Answer

To provide customers with a free annual credit report.

Answer

To publicly disclose the minutes from all Board of Directors meetings.

Question 5

A loan applicant is denied credit based in part on information obtained from a credit report. According to the Fair Credit Reporting Act (FCRA), what must the bank provide to the applicant?

Accepted Answer

An adverse action notice that includes the name of the credit reporting agency that supplied the information.

Answer

A copy of their internal credit scoring model.

Answer

The direct phone number of the loan officer who made the decision.

Answer

An offer for a different credit product with a higher interest rate.

Question 6

A bank's compliance program must include screening customer names against lists maintained by which of the following U.S. Treasury Department agencies to comply with economic and trade sanctions?

Accepted Answer

The Office of Foreign Assets Control (OFAC).

Answer

The Internal Revenue Service (IRS).

Answer

The Office of the Comptroller of the Currency (OCC).

Answer

The Financial Crimes Enforcement Network (FinCEN).