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FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
An FSP's FIC Act compliance officer resigns. The board decides to leave the post vacant for a year and says that, meanwhile, nobody at the FSP is accountable for FIC Act compliance. 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) The board is correct, because accountability rests with the appointed compliance officer alone.
- b) Accountability passes to the external auditor of the FSP for the period of the vacancy.
- c) The board or senior management remains responsible for ensuring compliance with the Act and the RMCP.Correct
- d) Accountability passes to the Financial Intelligence Centre until a new officer is appointed.
Why this is the answer
The board of directors, or senior management where there is no board, must ensure that the institution and its employees comply with the FIC Act and with its Risk Management and Compliance Programme, and must have a compliance function with a suitably competent person to assist. Leaving the post vacant does not shift responsibility; it is itself a governance failure.
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