Certified Regulatory Compliance Manager (CRCM) — Question 220

Mammoth Enterprises is a new customer to the bank. It is a wholly owned subsidiary of Mammoth Corporation. Which of the following statements, if true, would make Mammoth Enterprises an exempt customer at the bank?

Answer options

• A. Mammoth Corporation is a London corporation, trading on the London Stock Exchange.
• B. Mammoth Corporation is a U.S. corporation with unlisted stock.
• C. Mammoth Corporation is a U.S. corporation trading on the American Stock Exchange.
• D. Mammoth Enterprises is a U.S. corporation primarily in the investment banking business.

Correct answer: C

Explanation

The correct answer is C because being a U.S. corporation traded on the American Stock Exchange qualifies Mammoth Enterprises for exemption under certain banking regulations. Options A and B do not meet this criterion, as being a foreign corporation or unlisted stock does not provide the same exemption status. Option D, while relevant to the business type, does not pertain to the exemption based on stock exchange listing.