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Exam CRCM topic 1 question 134 discussion

Actual exam question from ABA's CRCM
Question #: 134
Topic #: 1
[All CRCM Questions]

In a review of a bank's compliance with the Regulation O overdraft provisions, what should the compliance officer do?

  • A. Identify the related interests of all directors, executive officers, and principal shareholders
  • B. Examine the bank's overdraft reports for a selected time period
  • C. Examine the annual FFIEC-004 reports on indebtedness to correspondent banks
  • D. Examine the bank's latest report of condition and income
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Suggested Answer: B 🗳️

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Cam22
4 months ago
Selected Answer: B
B. Examine the bank's overdraft reports for a selected time period. This action directly targets the review of overdraft occurrences, which are a specific concern of Regulation O. By examining overdraft reports, a compliance officer can identify any prohibited overdrafts made on behalf of directors, executive officers, or principal shareholders, or their related interests, ensuring the bank's adherence to Regulation O's overdraft provisions.
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