Preview Questions Compliance Officer | Role Specific Skill

Question 1: Under the Foreign Account Tax Compliance Act (FATCA), which of the following must a financial institution do?

Which action should you take?

Choose only one option

Allow clients to avoid U.S. tax regulations

Conduct enhanced due diligence on foreign investors only

Provide tax shelters for foreign accounts

Report financial accounts held by U.S. persons to the IRS

Question 2: Under the Payment Card Industry Data Security Standard (PCI DSS), which of the following is mandatory for financial institutions?

Which action should you take?

Choose only one option

Limit withdrawal amounts from ATMs

Notify customers of their card's expiry date

Provide cash-back services at retail locations

Encrypt cardholder data during transmission

Question 3: Which of the following does MiFID II specifically mandate?

Which action should you take?

Choose only one option

Detailed reporting of customer demographics

Reporting of all client orders and transactions in financial instruments

Annual audit reports on client performance

Transaction history of employees for compliance purposes

Question 4: How would you manage risks associated with emerging technologies in BFSI institutions?

Which action should you take?

Choose only one option

Conduct regular technology audits

Increase employee awareness

Avoid implementing new technologies

Rely on third-party security services

Question 5: When investigating fraud, why is it critical to analyze digital footprints such as IP addresses and login patterns?

Which action should you take?

Choose only one option

To identify unauthorized system access

To ensure compliance with IT policies

To track employee productivity

To measure system performance

Question 6: In the context of Breach Notification Laws, which of the following is required if there is an unauthorized access to personal financial data?

Which action should you take?

Choose only one option

Notify only the regulatory authorities

Only notify individuals if the breach involves financial loss

Do not notify if the breach involves internal employees

Notify affected individuals and regulatory authorities within a specified timeframe