Safeguards Rule for Financial Institutions Quiz

The BSA aims to facilitate the investigation of cases of suspected money laundering, fraud, and other illegal financial activities.

Each bank must establish a BSA/AML compliance program that includes procedures for detecting, preventing, and responding to identity theft and suspicious activities.

Banks file SARs when they detect known or suspected criminal violations or suspicious transactions related to money laundering.

<p>The BSA emphasizes assessing customer relationships and conducting due diligence based on risk.</p> Signup and view all the answers

<p>Entities subject to the BSA must maintain proper records.</p> Signup and view all the answers

<p>By adhering to the Red Flags Rule, organizations contribute to safeguarding sensitive information and maintaining the integrity of financial transactions.</p> Signup and view all the answers

<p>TRID aims to create a more consumer-friendly mortgage process by ensuring borrowers receive clear and accurate information about loan terms and costs.</p> Signup and view all the answers

<p>The two key forms introduced by TRID are Loan Estimate and Closing Disclosure.</p> Signup and view all the answers

<p>These forms help borrowers understand their mortgage terms and compare offers from different lenders.</p> Signup and view all the answers

<p>TRID regulates lenders' fees to ensure transparency and prevent hidden fees or surprises for borrowers.</p> Signup and view all the answers

<p>TRID rules apply to mortgages used for purchasing or refinancing residential properties, as well as construction-only and construction-permanent loans.</p> Signup and view all the answers

<p>TRID prevents hidden fees and surprises for borrowers as the mortgage matures.</p> Signup and view all the answers

<p>To enhance transparency and accuracy in mortgage advertising.</p> Signup and view all the answers

<p>Persons over which the Federal Trade Commission (FTC) has jurisdiction under the Federal Trade Commission Act.</p> Signup and view all the answers

<p>Any written or oral statement, illustration, or depiction designed to effect a sale or create interest in purchasing goods or services related to mortgages.</p> Signup and view all the answers

<p>A natural person to whom a mortgage credit product is offered or extended.</p> Signup and view all the answers

<p>A residential structure containing one to four units, including individual condominium units, cooperative units, mobile homes, manufactured homes, or trailers used as residences.</p> Signup and view all the answers

<p>To prevent misleading or deceptive practices in mortgage advertising.</p> Signup and view all the answers

<p>Financial institutions subject to the FTC’s jurisdiction and not under the enforcement authority of another regulator under section 505 of the Gramm-Leach-Bliley Act.</p> Signup and view all the answers

<p>They must develop, implement, and maintain an information security program with administrative, technical, and physical safeguards.</p> Signup and view all the answers

<p>The rule emphasizes a risk-based approach.</p> Signup and view all the answers

<p>The amendments were made in 2021.</p> Signup and view all the answers

<p>Examples include mortgage lenders, payday lenders, finance companies, and investment advisors.</p> Signup and view all the answers

<p>The Safeguards Rule is established under the Gramm-Leach-Bliley Act.</p> Signup and view all the answers

<p>Consumer Financial Protection Bureau (CFPB)</p> Signup and view all the answers

<p>Maintain a safe and sound mortgage industry while safeguarding consumer rights</p> Signup and view all the answers

<p>Official system for companies and individuals seeking to apply for licenses, amend existing licenses, renew licenses, or surrender license authorities</p> Signup and view all the answers

<p>66</p> Signup and view all the answers

<p>Money services businesses and consumer finance companies</p> Signup and view all the answers

<p>59</p> Signup and view all the answers