All RE5 questions
FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
When must an FSP generally carry out customer due diligence under the FIC Act?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Before establishing a business relationship or concluding a single transaction.Correct
- b) Only once a client lodges a complaint.
- c) Only for cash transactions exceeding R25 000.
- d) Once every five years, regardless of new activity.
Why this is the answer
CDD must be done up front — before the business relationship begins or the single transaction is concluded — and kept current through ongoing monitoring. It is not triggered by complaints, limited to cash over R25 000, or a mere five-yearly refresh.
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