Regs

Question 1

Payment system governed by the ACH Rules, UCC 4, UCC 4A, Electronic Fund Transfer Act, OFAC, Regulation E, The Right to Financial Privacy, Regulation D and Regulation CC.

Answer 1

ACH Network

Question 2

Payment system governed by UCC 4A, OFAC, Regulation J and Regulation CC.

Answer 2

Wire Transfer Payment System

Question 3

Payment system governed by the Electronic Fund Transfer Act, Regulation Z, Card Association Rules and Fair Credit Billing.

Answer 3

Card Payment System

Question 4

Payment system governed by the Expedited Funds Availability Act, UCC 3, UCC 4, OFAC, Regulation CC and Regulation J.

Answer 4

Check Payment System

Question 5

Implements the Expedited Funds Availability Act of 1987.

Answer 5

Regulation CC

Question 6

Transactions governed by UCC 4A.

Answer 6

Commercial wholesale credits, including wire transfers and CCD/CTX credits

Question 7

Governs the clearing and settlement of ACH credit and debit items by the Federal Reserve Banks, ODFIs and RDFIs.

Answer 7

Federal Reserve Bank Operating Circular 4 (OC 4)

Question 8

Provided for within the Debt Collection Improvement Act of 1996 requiring that virtually all non-tax related payments made by the federal government be made via electronic funds transfer.

Answer 8

The Electronic Funds Transfer (EFT) Mandate

Question 9

Governs check collection, wire transfers and FedNow payments through the Federal Reserve Bank.

Answer 9

Regulation J

Question 10

Governs federal government payments made via the ACH Network.

Answer 10

Title 31 of the Code of Federal Regulations (CFR) Part 210

Question 11

Provides rules for financial institutions that use EFT to process federal tax payments through EFTPS.

Answer 11

Title 31 of the Code of Federal Regulation (CFR) Part 203

Question 12

Governs the handling of payments for the Bureau of Public Debt made through the ACH Network.

Answer 12

Title 31 of the Code of Federal Regulation (CFR) Part 370

Question 13

Establishes reserve requirements and identifies non-transaction accounts.

Answer 13

Regulation D

Question 14

Implements the Electronic Fund Transfers Act (EFTA).

Answer 14

Regulation E

Question 15

Designed to help consumers “comparison shop” for credit by requiring disclosures about terms and cost.

Answer 15

Regulation Z

Question 16

Administers economic sanctions and embargo programs that require assets and transactions involving the interest of targeted parties be blocked or frozen.

Answer 16

Office of Foreign Assets Control (OFAC)

Question 17

Any agreement, authorization, Written Statement of Unauthorized Debit or other record that requires signatures or similarly authenticated methods may use an electronic signature in conformity with the terms of this Act.

Answer 17

Electronic Signatures in Global and National Commerce Act (E-Sign Act)

Question 18

Primary source of rules for the commercial ACH Network defining obligations and liabilities of Participating DFIs.

Answer 18

Nacha Operating Rules (a.k.a. ACH Rules)

Question 19

Act, also known as the Financial Services Modernization Act of 1999, required federal banking agencies to establish information security standards for financial institutions.

Answer 19

Gramm-Leach-Bliley Act (GLBA)

Question 20

Act requires financial institutions to assist U.S. government agencies to detect and prevent money laundering.

Answer 20

Bank Secrecy Act (BSA)

Question 21

Act broadened the scope of the Bank Secrecy Act to focus on terrorist financing.

Answer 21

USA PATRIOT Act

Question 22

Program requiring financial institutions to verify the identity of a person seeking to open an account, to maintain records of the information used to verify an identity and to consult government known or suspected terrorist lists.

Answer 22

Customer Identification Program (CIP)

Question 23

Governs the treatment of a consumer’s non-public personal information by financial institutions.

Answer 23

Regulation P

Question 24

Defines a negotiable check and types of endorsements.

Answer 24

Uniform Commercial Code Article 3 (UCC 3)

Question 25

Governs check collection outside the Federal Reserve Bank.

Answer 25

Uniform Commercial Code Article 4 (UCC 4)

Question 26

Governs wholesale credit transfers, which include wired funds and CCD and CTX credit entries.

Answer 26

Uniform Commercial Code Article 4A (UCC 4A)

Question 27

Defines Federal Reserve Bank and financial institution responsibilities in clearing checks.

Answer 27

Federal Reserve Bank Operating Circular 3 (OC 3)

Question 28

Terms under which an institution may access certain services and applications provided by a Federal Reserve Bank and under which an institution may send or receive data from a Federal Reserve Bank by means of an electronic connection.

Answer 28

Federal Reserve Bank Operating Circular 5 (OC 5)

Question 29

Defines Federal Reserve Bank and financial institution responsibilities in transmitting funds transfers through the Fedwire Funds Service.

Answer 29

Federal Reserve Bank Operating Circular 6 (OC 6)

Question 30

Federal Reserve policy addressing the risks that payment systems present to the Federal Reserve Banks, the banking system and to other sectors of the economy.

Answer 30

Payments System Risk (PSR) Policy

Question 31

Reports required to be filed by the Bank Secrecy Act when a financial institution identifies or suspects fraudulent activity.

Answer 31

Suspicious Activity Report (SAR)

Question 32

Law to protect consumers purchasing financial products and services requiring that consumers have access to information that lets them choose the option they believe is best for their situation.

Answer 32

Unfair, Deceptive or Abusive Acts or Practices (UDAAP)

Question 33

Name the FTC’s “four Ps” for evaluating whether a representation, omission, act or practice is likely to mislead.

Answer 33

(1) Prominent - will the consumer notice the information?; (2) Presented - is the format easy-to-understand?; (3) Placement - is the information located where the consumer would expect to look?; (4) Proximity - is the information close to the claim it qualifies?

Question 34

Contains terms for opening, maintaining and terminating a master account with the Federal Reserve Bank (FRB) as well as general provisions regarding the FRB’s services.

Answer 34

Federal Reserve Bank Operating Circular 1 (OC 1)

Question 35

Defines Federal Reserve Bank and financial institution responsibilities in transmitting security transfers through the Fedwire Securities Service.

Answer 35

Federal Reserve Bank Operating Circular 7 (OC 7)

Question 36

Private sector clearing house rules governing check image exchanges between ECCHO members.

Answer 36

ECCHO Rules

Question 37

Private sector rules for the RTP Network defining obligations and liabilities of participants transmitting and/or receiving payments and network messages.

Answer 37

RTP Operating Rules

Question 38

Rules governing the processing of credit and debit card transactions by Merchants and Card Issuers.

Answer 38

Card Network Rules/Card Association Rules

Question 39

Act providing protection of consumers engaged in electronic fund transfer services, including ATM, debit card, prepaid card and ACH transactions, and implemented through Regulation E.

Answer 39

Electronic Fund Transfers Act (EFTA)

Question 40

Act governs the availability of deposited funds (check, wire transfers and ACH) and is implemented through Regulation CC.

Answer 40

Expedited Funds Availability Act

Question 41

Act facilitated check truncation and image exchange between financial institutions, defined a substitute check and is implemented through Regulation CC.

Answer 41

Check Clearing for the 21st Century Act (a.k.a. Check 21 Act, Check 21)

Question 42

Governs the indorsement and payment of checks drawn on the United States Treasury.

Answer 42

Title 31 of the Code of Federal Regulation (CFR) Part 240

Question 43

Implements restrictions on garnishing exempt federal benefit payments and establishes procedures financial institutions must follow when receiving a garnishment order to a federal benefit recipient’s account.

Answer 43

Title 31 of the Code of Federal Regulation (CFR) Part 212

Question 44

Prescribes rules for transferring funds between the federal government and states for federal assistance programs.

Answer 44

Title 31 of the Code of Federal Regulation (CFR) Part 205

Question 45

Establishes standards for assessing debit card interchange fees and prohibits Card Issuers and Card Networks from inhibiting a Merchant’s ability to direct the routing of a debit transaction.

Answer 45

Regulation II (Debit Card Interchange Fees and Routing)

Question 46

Act aimed at limiting risk and enforcing transparency and accountability related to financial services used by consumers. Also responsible for the formation of the Consumer Financial Protection Bureau (CFPB).

Answer 46

Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank)

Question 47

Amendment is part of the Dodd-Frank Act and limits interchange fees charged to retailers for debit card processing.

Answer 47

Durbin Amendment

Question 48

Implements the Remittance Transfer Rule under Dodd-Frank, which addresses consumer-initiated international remittance transfers.

Answer 48

Regulation E, Subpart B

Question 49

Implements the Unlawful Internet Gambling Enforcement Act, which prohibits any person or business from knowingly accepting payments in connection with unlawful Internet gambling.

Answer 49

Regulation GG

Question 50

Law defines commercially reasonable security procedure.

Answer 50

UCC 4A

Question 51

Comprehensive set of reform measures aimed at strengthening the regulation, supervision and risk management of the banking sector, with a focus on large international banks.

Answer 51

Basel III

Question 52

Bulletin applicable to national banks advising them to identify, measure, monitor and control risk by implementing an effective risk management system appropriate for the bank’s size, complexity and risk profile across payment systems.

Answer 52

OCC Bulletin 2021-49

Question 53

Defines Federal Reserve Bank and financial institution responsibilities in transmitting funds transfers through the FedNow Service.

Answer 53

Federal Reserve Bank Operating Circular 8 (OC 8)