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CRCM – Certified Regulatory Compliance Manager

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Showing 19–20 of 20 questions

Question 19

Country A (a foreign country that is boycotting Country B, another foreign country) has ordered goods from ABC, a U.S. corporation. Country A has opened a letter of credit with Overseas, Inc., a foreign bank. The letter of credit specifies that ABC must certify that it does not do business with Country

B. Overseas, Inc., sends a telegram to First National Bank, a U.S. bank, stating the major terms and conditions of the letter of credit and asking First National Bank to confirm the letter of credit. The telegram does not state the boycott provisions. Overseas mails the letter of credit to First National Bank and asks First National Bank to confirm it. What may First National Bank do?

Select an option, then click Submit answer.

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    First National Bank must confirm it if it previously agreed to do so.
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    Overseas, Inc., sends a telegram to First National Bank, a U.S. bank, stating the major terms and conditions of the letter of credit and asking First National Bank to confirm the letter of credit. The telegram does not state the boycott provisions. Overseas mails the letter of credit to First National Bank and asks First National Bank to confirm it. What may First National Bank do?
    First National Bank may advise ABC of the letter of credit and administer its disposal, but may not confirm it and must report it to the Department of Commerce and the IRS.
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    First National Bank may do nothing but return the letter of credit to the issuing bank and report to the IRS.
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    First National Bank must confirm the letter of credit but should also report it to the Department of Commerce.
Question 20

The federal banking agencies have proposed an amendment to Regulation Z that would require a new early disclosure statement for loans secured by the borrower’s principal dwelling. After reading the proposed change, what should the compliance professional do FIRST?

Select an option, then click Submit answer.

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    Establish a task force to study the proposed rule.
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    Contact the bank’s platform software vendor to determine whether it will be ready for the change NOTES
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    Prepare a summary document that outlines the effects the proposed rule would have on the bank’s operations
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    Train bank staff on the new rule