CRCM Sample Exam| 100
questions| answers all correct
When reviewing exemptions for continued eligibility under the Bank Secrecy Act, a review of
which of the following is LEAST helpful? Correct Answer: Currency Transaction Reports
(CTRs)
A number of bank customers are members of the Army Reserve and have been called to active
duty for six months. Your bank's president wishes to issue a press release stating that the bank
will suspend all loan payment requirements while loan holders are on duty, extend the maturity
date of each loan, and permit interest to accrue at only 10% while the loan holders are on active
duty. You are asked to review the press release. Which of the following statements represents the
advice you should give the president? Correct Answer: Upon request, the bank must reduce the
interest rate on the loans to 6% effective on the date that the service members are called to report
for active duty, and remain at 6% until they are released from orders.
The bank is beginning e-banking and wants to deliver a full range of consumer electronic
services. The compliance manager is a member of the project team. Which of the following
functions is MOST appropriate for the compliance manager during the INITIAL stages of this
project? Correct Answer: Identifying the consumer protection regulatory provisions on liability
and error resolution.
Under the Interagency Statement on Retail Sales of Nondeposit Investment Products, the
required disclosures can be provided to the bank's customer in all of the following ways
EXCEPT: Correct Answer: in writing by a teller when referring a customer to the investment
sales area
You are developing bank procedures for determining when to escalate issues or problems
identified as a result of repeat SAR filings on the same account. These procedures should include
all of the following criteria EXCEPT: Correct Answer: notifying the customer
Which of the following is considered a non-listed business that is eligible for exemption from
CTR reporting requirements? Correct Answer: Licensed pari-mutual race track
By policy, a bank does not collect income information on employee loan applications. When
completing the HMDA LAR's income field, the bank must record the ____________. Correct
Answer: code for "not applicable"
Your examiner tells you that your bank is straining its resources by not exempting any of its
commercial account holders from CTR filing. The examiner notes that many of these customers
are publicly traded and could be exempted. Which of the following actions is in the bank's BEST
, interest? Correct Answer: Determine whether granting exemptions is a manageable risk for the
bank.
In your fair lending self-monitoring program, you found a prohibited basis that would result in a
regulatory violation was factored into the credit score. You should instruct management to
FIRST ____________. Correct Answer: suspend the use of the credit scoring system until it can
be corrected
The examiners criticized your bank at the last examination for failing to conduct a BSA/AML
risk assessment of its operations. You have been asked to complete the assessment. Which of the
following categories is NOT suggested by the FFIEC Examination Manual for your risk
assessment? Correct Answer: Vendors
Which of the following represents the required method for proving a consumer with the
insurance consumer protection disclosures in connection with a loan transaction? Correct
Answer: At the time of loan application
The bank has decided to begin offering a full range of non-deposit investment products to retail
customers. Your FIRST step should be to ____________. Correct Answer: review the
Interagency Statement on the Retail Sale of Nondeposit Investment Products
Your bank is considering a candidate for a vacant director position. The GREATEST potential
regulatory risk, if the individual is appointed, is his or her ____________. Correct Answer:
current indebtedness to your institution
During a review of your bank's customer identification procedures, you are likely to find
regulatory deficiencies if the bank does NOT ____________. Correct Answer: require
verification of the identify of each customer
In monitoring a bank's compliance with the federal Fair Housing Act, it is LEAST relevant to
review ____________. Correct Answer: handicap accessibility to property secured by a first
mortgage loan made by the bank
To ensure that your institution's policies and procedures are in compliance with Regulation B
and its requirements relating to spousal signatures, what is the most effective action you, as the
compliance officer, should take? Correct Answer: Provide periodic training on spousal signature
requirements of Regulation B to lending staff
Which of the following statements describes a bank's reporting requirements when it awards a
big-screen television, valued at $800, to a customer as a grand-opening prize? Correct Answer:
The fair market value of the prize is reportable on Form 100-MISC.
When establishing an exemption from currency transaction reporting for Phase II exempted
customer, banks must perform all of the following EXCEPT Correct Answer: Obtaining a
signed customer exemption statement
questions| answers all correct
When reviewing exemptions for continued eligibility under the Bank Secrecy Act, a review of
which of the following is LEAST helpful? Correct Answer: Currency Transaction Reports
(CTRs)
A number of bank customers are members of the Army Reserve and have been called to active
duty for six months. Your bank's president wishes to issue a press release stating that the bank
will suspend all loan payment requirements while loan holders are on duty, extend the maturity
date of each loan, and permit interest to accrue at only 10% while the loan holders are on active
duty. You are asked to review the press release. Which of the following statements represents the
advice you should give the president? Correct Answer: Upon request, the bank must reduce the
interest rate on the loans to 6% effective on the date that the service members are called to report
for active duty, and remain at 6% until they are released from orders.
The bank is beginning e-banking and wants to deliver a full range of consumer electronic
services. The compliance manager is a member of the project team. Which of the following
functions is MOST appropriate for the compliance manager during the INITIAL stages of this
project? Correct Answer: Identifying the consumer protection regulatory provisions on liability
and error resolution.
Under the Interagency Statement on Retail Sales of Nondeposit Investment Products, the
required disclosures can be provided to the bank's customer in all of the following ways
EXCEPT: Correct Answer: in writing by a teller when referring a customer to the investment
sales area
You are developing bank procedures for determining when to escalate issues or problems
identified as a result of repeat SAR filings on the same account. These procedures should include
all of the following criteria EXCEPT: Correct Answer: notifying the customer
Which of the following is considered a non-listed business that is eligible for exemption from
CTR reporting requirements? Correct Answer: Licensed pari-mutual race track
By policy, a bank does not collect income information on employee loan applications. When
completing the HMDA LAR's income field, the bank must record the ____________. Correct
Answer: code for "not applicable"
Your examiner tells you that your bank is straining its resources by not exempting any of its
commercial account holders from CTR filing. The examiner notes that many of these customers
are publicly traded and could be exempted. Which of the following actions is in the bank's BEST
, interest? Correct Answer: Determine whether granting exemptions is a manageable risk for the
bank.
In your fair lending self-monitoring program, you found a prohibited basis that would result in a
regulatory violation was factored into the credit score. You should instruct management to
FIRST ____________. Correct Answer: suspend the use of the credit scoring system until it can
be corrected
The examiners criticized your bank at the last examination for failing to conduct a BSA/AML
risk assessment of its operations. You have been asked to complete the assessment. Which of the
following categories is NOT suggested by the FFIEC Examination Manual for your risk
assessment? Correct Answer: Vendors
Which of the following represents the required method for proving a consumer with the
insurance consumer protection disclosures in connection with a loan transaction? Correct
Answer: At the time of loan application
The bank has decided to begin offering a full range of non-deposit investment products to retail
customers. Your FIRST step should be to ____________. Correct Answer: review the
Interagency Statement on the Retail Sale of Nondeposit Investment Products
Your bank is considering a candidate for a vacant director position. The GREATEST potential
regulatory risk, if the individual is appointed, is his or her ____________. Correct Answer:
current indebtedness to your institution
During a review of your bank's customer identification procedures, you are likely to find
regulatory deficiencies if the bank does NOT ____________. Correct Answer: require
verification of the identify of each customer
In monitoring a bank's compliance with the federal Fair Housing Act, it is LEAST relevant to
review ____________. Correct Answer: handicap accessibility to property secured by a first
mortgage loan made by the bank
To ensure that your institution's policies and procedures are in compliance with Regulation B
and its requirements relating to spousal signatures, what is the most effective action you, as the
compliance officer, should take? Correct Answer: Provide periodic training on spousal signature
requirements of Regulation B to lending staff
Which of the following statements describes a bank's reporting requirements when it awards a
big-screen television, valued at $800, to a customer as a grand-opening prize? Correct Answer:
The fair market value of the prize is reportable on Form 100-MISC.
When establishing an exemption from currency transaction reporting for Phase II exempted
customer, banks must perform all of the following EXCEPT Correct Answer: Obtaining a
signed customer exemption statement
