Which of the following is NOT a requirement of Regulation F?
Click on the arrows to vote for the correct answer
A. B. C. D.D
Regulation F, also known as the "Transfer of Funds" regulation, is a set of rules issued by the Consumer Financial Protection Bureau (CFPB) that governs electronic fund transfers (EFTs) and remittance transfers.
Out of the options given, the requirement that is NOT part of Regulation F is D. Providing quarterly reports to the board of directors of compliance audit results.
The other options listed are indeed requirements of Regulation F:
A. Writing and maintaining policies and procedures for managing exposure to correspondent banks: This requirement falls under the anti-money laundering (AML) provisions of Regulation F. The rule requires financial institutions to have policies and procedures in place to manage and mitigate risks associated with correspondent banking relationships.
B. Monitoring the exposure to correspondent banks on a regular basis: This is also a requirement under the AML provisions of Regulation F. Financial institutions are required to monitor their correspondent banking relationships regularly to identify and prevent suspicious activity.
C. Establishing internal limits on exposure to correspondents: This requirement is also part of the AML provisions of Regulation F. Financial institutions must establish internal limits on their exposure to correspondent banking relationships to manage and mitigate risks associated with these relationships.
D. Providing quarterly reports to the board of directors of compliance audit results: This requirement is not part of Regulation F, but rather a general best practice for compliance reporting. Financial institutions may choose to provide reports on their compliance audit results to their board of directors or other stakeholders, but it is not mandated by Regulation F.