Question 1

A compliance professional’s responsibilities include all of the following EXCEPT:

Options :

A : Understanding the business units operating environment and risk tolerance

B : Performing risk assessments with the assistance of business units to determine current risk levels and risks associated with the bank’s products, lines of business, customers, and locations, among other factors

C : Working with business units to ensure prompt corrective action for any detected errors

D : Assisting business lines with compliance training for employees, as needed

Answer: D

Question 2

Which of the following is NOT a requirement of Regulation F?

Options :

A : Writing and maintaining policies and procedures for managing exposure to correspondent banks

B : Monitoring the exposure to correspondent banks on a regular basis

C : Establishing internal limits on exposure to correspondents

D : Providing quarterly reports to the board of directors of compliance audit results

Answer: D

Question 3

A routine review of account records reveals that suspicious activity involving foreign currency has occurred in the account of one of the bank’s directors. Which of the following actions should be taken FIRST?

Options :

A : A SAR should be filed.

B : The bank’s board of directors should discuss the account activity without the affected director being present.

C : The bank’s president should meet with the affected director to discuss the account activity.

D : . The bank should file a CTR, checking the box that indicates the report is for suspicious activity.

Answer: A

Question 4

Which of the following is the best method for a large bank to use in monitoring its CRA performance?

Options :

A :

Review the effectiveness of marketing materials.

B : Evaluate approval and denial rates for minority loan applicants.

C : Perform a quarterly evaluation of the bank’s loans-to-deposits ratio.

D :

Perform a geographic analysis of lending levels and dispersion of loans.

Answer: D

Question 5

A routine review of account records reveals that suspicious activity involving foreign currency has

occurred in the account of one of the bank’s directors. Which of the following actions should be

taken FIRST?

Options :

A : A SAR should be fileD.

B : The bank’s board of directors should discuss the account activity without the affected director being present.

C : The bank’s president should meet with the affected director to discuss the account activity.

D : The bank should file a CTR, checking the box that indicates the report is for suspicious activity.

Answer: A