All RE5 questions
FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
When the client is a company, the FIC Act requires the FSP to identify and verify the 'beneficial owner'. That is the natural person who ultimately:
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Signs the account-opening application form.
- b) Owns or controls the client entity.Correct
- c) Acts as the FSP’s compliance officer.
- d) Pays the first premium or contribution.
Why this is the answer
The beneficial owner is the human being who ultimately owns or controls the entity, even through layered structures. The Act requires the FSP to look through the company to find that person. The signatory, the first payer or the FSP's own compliance officer are not, by virtue of those facts, the beneficial owner.
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