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FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
The FIC Act classifies the FSP as an accountable institution. What is its key foundational compliance obligation under the Act?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) To submit a full list of all its clients to the FIC.
- b) To engage an external security company to vet clients.
- c) To accept only cash transactions from verified clients.
- d) To develop, document, maintain and implement a Risk Management and Compliance Programme (RMCP).Correct
Why this is the answer
Every accountable institution must have a written RMCP setting out how it identifies, assesses and manages money-laundering/terror-financing risk, including CDD, reporting and record-keeping. It is not required to refuse non-cash business, hand over its whole client list, or outsource vetting to a security firm.
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