Bank Compliance

Bank employees are required to comply with the BSA. Which statement best completes the following sentence: What you must do to comply with the BSA and protect the assets of your financial institution will be dictated by ______________________.

• The level of experience of your senior management team and your job responsibilities

• Where you work in the bank and your job responsibilities

• Your job responsibilities and the length of time you have been employed by the bank

• The length of time you have been employed by the bank and where you work in the bank

Consumer reporting agencies (CRAs) are entities that assemble consumer reports for the purpose of furnishing them to third parties. Their FCRA responsibilities include which activity?

• Maintaining accurate and complete information in their files and providing reports to users of reports, such as banks, only if the user has a permissible purpose

• Investigating disputes regarding accuracy of information and notifying customers whenever anyone requests a report

• Charging consumers a minimum of $8 for a copy of their report when they have been denied credit based on information contained in the report

• Providing reports to users of reports such as banks regardless of the purpose of the request

Rochelle applied for a loan to purchase a car, but was denied because her credit score was too low. When BMW Bank sends Rochelle the Regulation B required adverse action notice, what additional information must be included in that notice?

• The make and model of the car

• The names of two other lenders who make high-risk auto loans

• A request that her husband co-sign the loan

• The FCRA credit score disclosure

What is one good way to ensure that your bank’s advertisements are not unfair, abusive or deceptive?

• Review all promotional materials and marketing scripts to ensure that they fairly and adequately describe the terms, benefits, and material limitations of the product or service being offered

• Omit any product information that may be required but could potentially be confusing

• Omit the use of the ''Member FDIC'' advertising statement in deposit advertisements because the insurance rules are complicated and could confuse customers

• Only advertise ''in branch'' instead of in newspapers and other public media because in-branch advertisements are not subject to the UDAAP rules

When an institution receives the CRA rating, it reflects how the institution is meeting its responsibilities to whom?

• Its Shareholders

• FDIC

• FFIEC

• Community it serves