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FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
An FSP that is an accountable institution has no written Risk Management and Compliance Programme. Its compliance officer says that she 'knows the rules' and that staff apply due diligence correctly in practice. Which statement is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) It complies, because only banks must have a written compliance programme.
- b) It contravenes the FAIS Act, but the FIC Act sets no such requirement.
- c) It contravenes the FIC Act, which requires a documented programme that is implemented.Correct
- d) It complies, as long as its staff carry out due diligence correctly in practice.
Why this is the answer
Every accountable institution must develop, document, maintain and implement a Risk Management and Compliance Programme setting out how it identifies, assesses and manages money-laundering and terrorist-financing risk. Good practice without a documented programme does not meet that duty, and the duty is in the FIC Act, for all accountable institutions.
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