APRP Newest Exam with precise detailed answers || || || || || ||
ACH Network is governed by these rules and regulations.
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ACH Rules ||
EFTA and Regulation E
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Regulation CC ||
Regulation D ||
31 CFR Part 203, 208, 210, & 370
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UCC Articles 4 & 4A
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BSA/AML
State EFT Acts
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FRB Operating Rules Circular 4
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Private Sector ACH Operator Rules
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OFAC
Emerging payments are governed by these rules and regulations.
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Generally, these are ACH or card transactions; therefore, the respective payment system
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rules and regulation would apply.
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Check payment system is governed by these rules and regulations.
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Regulation CC.. ||
UCC Article 3.
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UCC Article 4.
|| ||
Regulation J Subpart A. || || ||
,F.R.B. Operating Circular 3..|| || ||
E.C.C.H.O Rules ||
Examples of credit risk with wire payments. || || || || || ||
1. Originator/Sender Bank makes an irrevocable payment on behalf of a customer through
|| || || || || || || || || || || || ||
an extension of credit.
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2. Beneficiary Bank does not post the payment properly.
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Card payment system is governed by these rules and regulations.
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1. Regulation E
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2. Regulation Z
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3. Card Association Rules
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Examples of credit risk with emerging payments. || || || || || ||
1. Failure or bankruptcy of entity initiating payment.
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2. Funds availability prior to receiving final settlement.
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3. Per-transaction dollar limits being set too high
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4. Funds unavailable to satisfy debit return
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Maximum timeframe an ODFI is exposed to credit risk for ACH debit origination.
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1. up to 60 days from the Settlement Date for consumer Standard Entry Class (SEC) codes
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per the ACH Rules.
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2. Up to 60 days from the consumer's statement date per Regulation E.
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Examples of credit risk with card payments. || || || || || ||
1. Merchant declares bankruptcy, commits fraud or is otherwise unable to pay its
|| || || || || || || || || || || || ||
chargebacks causing the Acquiring Financial Institution to pay the Card Issuer.
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2. with EMV, the Card issuer may encounter credit risk due to fallback transaction.
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Examples of credit risk with ACH debit payments. || || || || || || ||
1. ODFI is unable to recover funds from Originator for returned debit entries
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2. RDFI is untimely in returning debit entries
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Maximum timeframe an ODFI is exposed to credit risk for ACH credit origination.
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Up to two banking days.
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Examples of credit risk with ACH credit payments. || || || || || || ||
, 1. Originator fails to fund ODFI for credit entries initiated.
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2. RDFI posted credit entry prior to settlement Date.
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Examples of fraud risk with check payments.
|| || || || || ||
1. Lost or stolen check
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2. Alteration of deposited items.
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3. Forged or missing endorsement
|| || || ||
4. Deposit of counterfeit items
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5. Check kiting
|| ||
6. Redeposit of items/duplicate presentment through RDC
|| || || || || ||
7. Proper disposal of deposited items by RDC customers.
|| || || || || || || ||
8. Insider fraud.
|| ||
Examples of fraud risk with wire payments.
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1. Malware, spyware, and viruses.
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2. Business email compromise.
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3. Money laundering
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4. Dishonest employees.
|| ||
5. Lack of dual controls or segregation of duties.
|| || || || || || || ||
Examples of fraud risk with ACH Payments.
|| || || || || ||
1. Misappropriation of funds
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2. Misdirect payment
|| ||
3. Account takeover
|| ||
4. Business email compromise scam
|| || || ||
5. Vendor impersonation fraud.
|| || ||
Examples of operational risk with check payments processed through RDC.
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1. Faulty equipment
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2. Inadequate procedures
|| ||
3. Inadequate training
|| ||
4. Poor image quality
|| || ||
5. resubmission of file or redeposit of physical items
|| || || || || || || ||
6. Technology-related issues, such as failure to maintain compatible and integrated IT
|| || || || || || || || || || || ||
systems
7. Reliability of RDC vendor
|| || || ||
Examples of operational risk with wire payments
|| || || || || ||
ACH Network is governed by these rules and regulations.
|| || || || || || || ||
ACH Rules ||
EFTA and Regulation E
|| || ||
Regulation CC ||
Regulation D ||
31 CFR Part 203, 208, 210, & 370
|| || || || || || ||
UCC Articles 4 & 4A
|| || || ||
BSA/AML
State EFT Acts
|| ||
FRB Operating Rules Circular 4
|| || || ||
Private Sector ACH Operator Rules
|| || || ||
OFAC
Emerging payments are governed by these rules and regulations.
|| || || || || || || ||
Generally, these are ACH or card transactions; therefore, the respective payment system
|| || || || || || || || || || || ||
rules and regulation would apply.
|| || || ||
Check payment system is governed by these rules and regulations.
|| || || || || || || || ||
Regulation CC.. ||
UCC Article 3.
|| ||
UCC Article 4.
|| ||
Regulation J Subpart A. || || ||
,F.R.B. Operating Circular 3..|| || ||
E.C.C.H.O Rules ||
Examples of credit risk with wire payments. || || || || || ||
1. Originator/Sender Bank makes an irrevocable payment on behalf of a customer through
|| || || || || || || || || || || || ||
an extension of credit.
|| || ||
2. Beneficiary Bank does not post the payment properly.
|| || || || || || || ||
Card payment system is governed by these rules and regulations.
|| || || || || || || || ||
1. Regulation E
|| ||
2. Regulation Z
|| ||
3. Card Association Rules
|| || ||
Examples of credit risk with emerging payments. || || || || || ||
1. Failure or bankruptcy of entity initiating payment.
|| || || || || || ||
2. Funds availability prior to receiving final settlement.
|| || || || || || ||
3. Per-transaction dollar limits being set too high
|| || || || || || ||
4. Funds unavailable to satisfy debit return
|| || || || || ||
Maximum timeframe an ODFI is exposed to credit risk for ACH debit origination.
|| || || || || || || || || || || ||
1. up to 60 days from the Settlement Date for consumer Standard Entry Class (SEC) codes
|| || || || || || || || || || || || || || || ||
per the ACH Rules.
|| || ||
2. Up to 60 days from the consumer's statement date per Regulation E.
|| || || || || || || || || || || ||
Examples of credit risk with card payments. || || || || || ||
1. Merchant declares bankruptcy, commits fraud or is otherwise unable to pay its
|| || || || || || || || || || || || ||
chargebacks causing the Acquiring Financial Institution to pay the Card Issuer.
|| || || || || || || || || ||
2. with EMV, the Card issuer may encounter credit risk due to fallback transaction.
|| || || || || || || || || || || || ||
Examples of credit risk with ACH debit payments. || || || || || || ||
1. ODFI is unable to recover funds from Originator for returned debit entries
|| || || || || || || || || || || ||
2. RDFI is untimely in returning debit entries
|| || || || || || ||
Maximum timeframe an ODFI is exposed to credit risk for ACH credit origination.
|| || || || || || || || || || || ||
Up to two banking days.
|| || || ||
Examples of credit risk with ACH credit payments. || || || || || || ||
, 1. Originator fails to fund ODFI for credit entries initiated.
|| || || || || || || || ||
2. RDFI posted credit entry prior to settlement Date.
|| || || || || || || ||
Examples of fraud risk with check payments.
|| || || || || ||
1. Lost or stolen check
|| || || ||
2. Alteration of deposited items.
|| || || ||
3. Forged or missing endorsement
|| || || ||
4. Deposit of counterfeit items
|| || || ||
5. Check kiting
|| ||
6. Redeposit of items/duplicate presentment through RDC
|| || || || || ||
7. Proper disposal of deposited items by RDC customers.
|| || || || || || || ||
8. Insider fraud.
|| ||
Examples of fraud risk with wire payments.
|| || || || || ||
1. Malware, spyware, and viruses.
|| || || ||
2. Business email compromise.
|| || ||
3. Money laundering
|| ||
4. Dishonest employees.
|| ||
5. Lack of dual controls or segregation of duties.
|| || || || || || || ||
Examples of fraud risk with ACH Payments.
|| || || || || ||
1. Misappropriation of funds
|| || ||
2. Misdirect payment
|| ||
3. Account takeover
|| ||
4. Business email compromise scam
|| || || ||
5. Vendor impersonation fraud.
|| || ||
Examples of operational risk with check payments processed through RDC.
|| || || || || || || || ||
1. Faulty equipment
|| ||
2. Inadequate procedures
|| ||
3. Inadequate training
|| ||
4. Poor image quality
|| || ||
5. resubmission of file or redeposit of physical items
|| || || || || || || ||
6. Technology-related issues, such as failure to maintain compatible and integrated IT
|| || || || || || || || || || || ||
systems
7. Reliability of RDC vendor
|| || || ||
Examples of operational risk with wire payments
|| || || || || ||
