All RE5 questions
FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
The FIC Act classifies an FSP as an Accountable Institution (AI). What is the FSP's mandatory initial action to comply with the Act?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Only accept cash transactions.
- b) Submit a list of all clients to the FIC.
- c) Hire an external security company.
- d) Develop and implement a Risk Management and Compliance Programme (RMCP).Correct
Why this is the answer
The FIC Act (Sec 42A) mandates that all Accountable Institutions (AIs), including FSPs, must develop, document, maintain, and implement a Risk Management and Compliance Programme (RMCP). This RMCP contains all the internal rules and controls for CDD, reporting, and record keeping.
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