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FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
A client of Boitumelo's firm deposits cash above the prescribed cash-threshold amount. What does the FIC Act require?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) The institution must file a cash threshold report (CTR) with the FIC for cash transactions above the prescribed amount.Correct
- b) Nothing, provided the client is a long-standing customer of the firm.
- c) The institution must immediately refund the cash to avoid any reporting duty.
- d) It must report the cash only to SARS, and only at the end of the tax year.
Why this is the answer
Cash transactions above the prescribed threshold trigger a mandatory cash threshold report (CTR) to the FIC, regardless of how trusted the client is. It is an automatic, amount-based report — distinct from a suspicion-based report.
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