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

Unless excluded by a board resolution or the bylaws, the following officers will be considered to be executive officers EXCEPT:

Options :

A : Chairman of the board

B : President

C : Each vice-president and above (for example, senior vice-president, executive vicepresident, and so on)

D : Brokerage house’s vice president

Answer: D

Question 3

Your bank’s president comes back from an industry conference and tells the compliance officer that

she attended a presentation about OFAC. She heard the bank could be fined for not adhering to OFAC

requirements. Thus, she has directed that every bank transaction be reviewed for OFAC compliance.

What is the most appropriate statement the compliance officer could make to the bank president?

Options :

A : The bank is already in compliance because OFAC checks are performed on all new depositors

B : The bank has assessed its OFAC risk and has implemented risk-based OFAC procedures

C : OFAC does not apply because the bank does not conduct business in foreign countries or with foreign nationals

D : Banks are usually not fined for OFAC violations unless they conduct transactions with SDNs or blocked countries

Answer: B

Question 4

Examples of unfair practices mentioned in guidelines against Predatory and Abusive Lending includes loan flipping and loan equity stripping. It is said that:

Options :

A : Loan flipping may be unfair because it increases the chances of foreclosure by decreasing home equity and increasing debt burden

B : Equity stripping is the practice of making loans secured by the consumer’s home but with high, upfront fees that are financed and secured by the home

C : Loan flipping is the practice of making loans secured by the consumer’s home but with high, upfront fees that are financed and secured by the home

D : Equity stripping may be unfair because it increases the chances of foreclosure by decreasing home equity and increasing debt burden

Answer: A,B

Question 5

How long after discovery does a bank have to report any lost or missing securities when criminal activity is suspected?

Options :

A : 90 calendar days

B : 1 business day

C : Never. Law enforcement must report

D : 10 business days

Answer: B

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