Online Access Free CRCM Exam Questions

Second National has decided to close one of its less profitable neighborhood branches. Which of the following actions is NOT required of the bank under federal law?

• A.Send a notice to its regulatory agency
• B.Post a notice at the branch
• C.Publish a notice of the closing in the local newspaper
• D.Send notices to the branch customers

Which of the following are recommended practices In Avoiding Predatory and Abusive Lending Practices in Brokered and Purchased Loans-AL-2003-3?

• A.Have written agreements with third-party brokers that specifically and clearly address the rights and responsibilities of each party. Written agreements should
  1.Ensure that no inappropriate compensation exists
  2.Provide for indemnification to the bank
  3.Enable banks to exit the arrangement through a termination procedure
  4.Provide for the bank's and the OCC's ability to access all records of the third party and to audit the third party's operations
• B.All of the above
• C.Verify that brokers and originators have established policies to ensure that loans will comply with all applicable laws
• D.Establish an effective management information system to monitor the performance of third-party brokers and originators

To be effective, compliance risk management professionals must design a framework to ensure that bank management understands the risks and the steps that must be taken to mitigate them. The many roles compliance professionals fill incorporate risk management aspects including:

• A.All of these
• B.Overseeing compliance training targeting higher risk areas
• C.Tracking regulatory proposals and final rules to understand new risks
• D.Coordinating regulatory exams to explain risks to examiners

During a recent compliance examination, regulatory examiners found that the bank was
not conducting flood hazard area determinations before closing on construction loans.
The compliance professional has reviewed the files and agreed with the examiners'
finding. What should be done FIRST?

• A.Review all construction loan files to determine the extent of the problem
• B.Prepare an analysis for bank management explaining the requirement
• C.Conduct a risk assessment of the flood determination requirement on construction loans
• D.Review the bank's flood policies and procedures to determine where the compliance failure occurred

Martha Whitmire, the BSA Compliance Officer for First National Bank, is responsible for monitoring the bank's daily currency activity and wire transfers, for compliance with information
retention
and reporting
requirements. Ms.
Whitmire notices
during her review on March 10 that, during the previous two weeks, a transaction occurred on the same account several times during the week. The activity appeared at one branch office as cash deposits in dollar amounts under the reporting thresholds. Ms. Whitmire discusses this activity with the branch manager and determines that this same deposit activity occurred several times during the previous six weeks. She then conducts a more extensive examination of the account's activity for several months and discovers that cash deposits were made at one branch office and purchases of bank cashiers checks were made by withdrawals from the same account at a different branch office. All withdrawals and purchases of cashier's checks were for the identical amount as the cash deposits.Which statement best describes Ms. Whitmire's responsibility?

• A.Report the account activity as suspicious account activity and recommend that a SAR be filed
• B.Make no report of the activities because the transactions were not discovered until after the 15-day reporting deadline
• C.Report the account activity to senior management for further review
• D.Complete a CTR for each of the cash activities at the branch office