Regulatory Environment

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 through the Federal Reserve Bank and wire transfer.

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 Transfer 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)