ACH

Question 1

ODFIs that unbundled their “on-us” domestic ACH transactions should screen these transactions more closely.

Answer 1

True

Question 2

Which of the following is information that must be screened by the ODFI prior to transmittal to the ACH operator?

Answer 2

The Originator and Receiver

Question 3

ODFIs are ultimately responsible for OFAC compliance regarding ACH transactions.

Answer 3

False

Question 4

What is the easiest way to determine if you are using the current version of the ACH rules?

Answer 4

Match the color of the book or disk to its corresponding year

Question 5

Outbound IAT transactions found to be in apparent violation of an OFAC requirement must be handled _____

Answer 5

By declining to originate the transaction

Question 6

Positive pay and cash management products are beneficial to business customers that do not have the benefit of a 60-day right of return.

Answer 6

True

Question 7

In outbound IAT transactions, only the receiver needs to be screened for OFAC.

Answer 7

False

Question 8

Financial institutions that do not operate as ODFIs and have automated screening processes in place have met their OFAC obligations.

Answer 8

False

Question 9

Any “suspected” transactions can still be processed by the ACH operator but must be reported immediately.

Answer 9

False

Question 10

Which of the following is not an example of an information-only zero dollar entry?

Answer 10

Pensions

Question 11

OFAC requirements only apply to international transactions.

Answer 11

False

Question 12

The determination of whether a transaction is “international” is based on _____.

Answer 12

Whether the funds move between the United States and another country

Question 13

Branches of U.S. companies that are operating in foreign countries are not subject to OFAC.

Answer 13

False

Question 14

As a type of ACH risk, systemic risk is defined as:

Answer 14

The inability of an ACH Network participant to settle its commitments, resulting in the inability of other participants to settle their obligations

Question 15

While conducting an ACH risk assessment, it is necessary to meet your regulator’s requirements.

Answer 15

True

Question 16

An ACH entry is the electronic transmission of information regarding funds movement and additional payment-related data.

Answer 16

True

Question 17

The main benefits associated with the use of the ACH Network are the decreased need for security and improved confidentiality.

Answer 17

False

Question 18

During the check clearing process, float time has decreased significantly for consumer-to-business payments and business-to-business payments, but consumer-to-consumer payments still carry a certain amount of float.

Answer 18

True

Question 19

Which of the following are considered primary ACH risks?

Answer 19

Operational Risk
Credit Risk
Compliance Risk
Reputational Risk

Question 20

Which of the following factors is not to be considered by the RDFI when determining how to handle an IAT transaction that appears to be a violation of OFAC sanctions?

Answer 20

The dollar amount of the transaction