Certified Regulatory Compliance
Manager Examination (Crcm) Questions
And Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A | Instant
Download Pdf
Question 1
Which federal law primarily requires financial institutions to help detect and
prevent money laundering activities?
A. Fair Credit Reporting Act
B. Truth in Lending Act
C. Bank Secrecy Act
D. Equal Credit Opportunity Act
Rationale: The Bank Secrecy Act (BSA) is the primary anti-money laundering law
in the United States. It requires financial institutions to maintain records, file
Currency Transaction Reports (CTRs), monitor suspicious activities, and establish
AML compliance programs. The law is designed to combat money laundering,
terrorist financing, and other financial crimes. The other listed laws focus on
consumer disclosures and anti-discrimination protections rather than AML
obligations.
Question 2
Under the Equal Credit Opportunity Act (ECOA), a creditor may not discriminate
against an applicant based on:
,A. Income level
B. Credit score
C. Marital status
D. Debt-to-income ratio
Rationale: ECOA prohibits discrimination in any aspect of a credit transaction
based on protected characteristics such as race, religion, sex, marital status, age,
national origin, and receipt of public assistance. Marital status is specifically
protected. Creditors may still consider legitimate underwriting factors such as
income level, credit score, and debt obligations when evaluating repayment
ability.
Question 3
What is the primary purpose of the Community Reinvestment Act (CRA)?
A. To regulate international banking transactions
B. To establish reserve requirements
C. To encourage banks to meet community credit needs
D. To limit interest rates on loans
Rationale: The Community Reinvestment Act was enacted to encourage banks
and other depository institutions to help meet the credit needs of the
communities they serve, including low- and moderate-income neighborhoods.
CRA evaluations assess lending, investments, and services provided to
communities. The law does not establish reserve requirements or directly
regulate interest rates.
Question 4
A Suspicious Activity Report (SAR) generally must be filed within how many
calendar days after detecting suspicious activity?
,A. 10 days
B. 15 days
C. 30 days
D. 90 days
Rationale: Financial institutions are generally required to file a SAR within 30
calendar days after initial detection of facts that may constitute suspicious
activity. If no suspect is identified, institutions may extend the filing period to 60
days. Prompt reporting enables law enforcement agencies to investigate
potential financial crimes effectively.
Question 5
Which regulation implements the Truth in Lending Act (TILA)?
A. Regulation B
B. Regulation E
C. Regulation O
D. Regulation Z
Rationale: Regulation Z implements the Truth in Lending Act and governs
consumer credit disclosures, APR calculations, advertising standards, and
borrower rights. It ensures consumers receive meaningful information about
credit terms and costs. Regulation B implements ECOA, Regulation E implements
EFTA, and Regulation O governs insider lending.
Question 6
The primary purpose of the Gramm-Leach-Bliley Act (GLBA) privacy provisions is
to:
A. Eliminate all data sharing among institutions
B. Restrict online banking services
, C. Protect consumers’ nonpublic personal information
D. Prevent all cyberattacks against banks
Rationale: GLBA requires financial institutions to protect customers’ nonpublic
personal information and provide privacy notices explaining information-sharing
practices. Customers also have certain rights to opt out of some sharing
arrangements. While GLBA promotes data security, it does not guarantee
prevention of all cyberattacks or prohibit all information sharing.
Question 7
Under the Fair Credit Reporting Act (FCRA), a consumer has the right to:
A. Eliminate all negative information immediately
B. Receive unlimited free credit reports annually
C. Dispute inaccurate information in a credit report
D. Prevent lenders from accessing credit reports entirely
Rationale: FCRA grants consumers the right to dispute incomplete or inaccurate
information contained in their credit reports. Credit reporting agencies and
furnishers must investigate disputes and correct inaccuracies. Consumers are
also entitled to one free annual report from each nationwide credit bureau, not
unlimited reports.
Question 8
What is the primary purpose of an institution’s compliance management system
(CMS)?
A. To maximize loan production
B. To eliminate all operational risk
C. To ensure adherence to laws and regulations
D. To guarantee profitability
Manager Examination (Crcm) Questions
And Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A | Instant
Download Pdf
Question 1
Which federal law primarily requires financial institutions to help detect and
prevent money laundering activities?
A. Fair Credit Reporting Act
B. Truth in Lending Act
C. Bank Secrecy Act
D. Equal Credit Opportunity Act
Rationale: The Bank Secrecy Act (BSA) is the primary anti-money laundering law
in the United States. It requires financial institutions to maintain records, file
Currency Transaction Reports (CTRs), monitor suspicious activities, and establish
AML compliance programs. The law is designed to combat money laundering,
terrorist financing, and other financial crimes. The other listed laws focus on
consumer disclosures and anti-discrimination protections rather than AML
obligations.
Question 2
Under the Equal Credit Opportunity Act (ECOA), a creditor may not discriminate
against an applicant based on:
,A. Income level
B. Credit score
C. Marital status
D. Debt-to-income ratio
Rationale: ECOA prohibits discrimination in any aspect of a credit transaction
based on protected characteristics such as race, religion, sex, marital status, age,
national origin, and receipt of public assistance. Marital status is specifically
protected. Creditors may still consider legitimate underwriting factors such as
income level, credit score, and debt obligations when evaluating repayment
ability.
Question 3
What is the primary purpose of the Community Reinvestment Act (CRA)?
A. To regulate international banking transactions
B. To establish reserve requirements
C. To encourage banks to meet community credit needs
D. To limit interest rates on loans
Rationale: The Community Reinvestment Act was enacted to encourage banks
and other depository institutions to help meet the credit needs of the
communities they serve, including low- and moderate-income neighborhoods.
CRA evaluations assess lending, investments, and services provided to
communities. The law does not establish reserve requirements or directly
regulate interest rates.
Question 4
A Suspicious Activity Report (SAR) generally must be filed within how many
calendar days after detecting suspicious activity?
,A. 10 days
B. 15 days
C. 30 days
D. 90 days
Rationale: Financial institutions are generally required to file a SAR within 30
calendar days after initial detection of facts that may constitute suspicious
activity. If no suspect is identified, institutions may extend the filing period to 60
days. Prompt reporting enables law enforcement agencies to investigate
potential financial crimes effectively.
Question 5
Which regulation implements the Truth in Lending Act (TILA)?
A. Regulation B
B. Regulation E
C. Regulation O
D. Regulation Z
Rationale: Regulation Z implements the Truth in Lending Act and governs
consumer credit disclosures, APR calculations, advertising standards, and
borrower rights. It ensures consumers receive meaningful information about
credit terms and costs. Regulation B implements ECOA, Regulation E implements
EFTA, and Regulation O governs insider lending.
Question 6
The primary purpose of the Gramm-Leach-Bliley Act (GLBA) privacy provisions is
to:
A. Eliminate all data sharing among institutions
B. Restrict online banking services
, C. Protect consumers’ nonpublic personal information
D. Prevent all cyberattacks against banks
Rationale: GLBA requires financial institutions to protect customers’ nonpublic
personal information and provide privacy notices explaining information-sharing
practices. Customers also have certain rights to opt out of some sharing
arrangements. While GLBA promotes data security, it does not guarantee
prevention of all cyberattacks or prohibit all information sharing.
Question 7
Under the Fair Credit Reporting Act (FCRA), a consumer has the right to:
A. Eliminate all negative information immediately
B. Receive unlimited free credit reports annually
C. Dispute inaccurate information in a credit report
D. Prevent lenders from accessing credit reports entirely
Rationale: FCRA grants consumers the right to dispute incomplete or inaccurate
information contained in their credit reports. Credit reporting agencies and
furnishers must investigate disputes and correct inaccuracies. Consumers are
also entitled to one free annual report from each nationwide credit bureau, not
unlimited reports.
Question 8
What is the primary purpose of an institution’s compliance management system
(CMS)?
A. To maximize loan production
B. To eliminate all operational risk
C. To ensure adherence to laws and regulations
D. To guarantee profitability
