Question

The trust compliance officer should act as liaison with the preliminary bank regulator because:

a. they speak the same language.
b. management doesn't like to do it.
c. the examiners are going to want to assess the compliance function first anyway.
d. the compliance officer can monitor the examination scope and save examination time by demonstrating the effectiveness of the compliance program.

Answer 1

The trust compliance officer should liaise with the bank regulator primarily to save examination time and demonstrate the effectiveness of the compliance program, aligning with regulatory requirements and managing risk. The correct option is D.

Step-by-step explanation:

The trust compliance officer should act as a liaison with the preliminary bank regulator because the compliance officer can monitor the examination scope and save examination time by demonstrating the effectiveness of the compliance program.

This proactive engagement helps ensure that the bank is aligned with regulatory expectations and that potential issues are addressed swiftly, thereby maintaining a positive net worth and managing risk appropriately.

In the context of bank supervision, this collaboration is crucial as government agencies, like the Office of the Comptroller of the Currency within the U.S. Department of the Treasury, have the responsibility to conduct on-site reviews to monitor banks and savings and loan institutions.