All RE5 questions
FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
Why does the FIC Act prohibit 'tipping off' a client about a suspicious transaction report?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Because warning the client could allow them to frustrate the investigation or move the proceeds before authorities can act.Correct
- b) Because clients are entitled to no information at all about anything, ever.
- c) Because the report is sent to the client rather than to the FIC.
- d) Because tipping off speeds up the FIC’s investigation.
Why this is the answer
Tipping off is prohibited because alerting a suspect could let them destroy evidence, move funds or otherwise defeat the investigation. The STR goes to the FIC, not to the client, and the prohibition protects the integrity of the process.
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