All RE5 questions
FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
An accountable institution identifies two transactions that must be reported under the FIC Act: a R70 000 cash payment and a suspicious transfer. Its new compliance officer is unsure where reports go. What must it do?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Tell the client first and ask for an explanation before reporting
- b) Tell the Ombud
- c) Report it to the FSCA, which passes it to the Centre if necessary
- d) Report both to the Centre in timeCorrect
Why this is the answer
Reportable transactions, whether cash threshold or suspicious and unusual transactions, must be reported to the Financial Intelligence Centre within the prescribed period. The FSCA and the Ombud do not receive these reports, and telling the client could amount to tipping off.
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