All RE5 questions
FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
Mahlatse Brokers is an authorised FSP that also falls within the definition of an 'accountable institution'. Before it may lawfully operate under the FIC Act, 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) Register with the Financial Intelligence Centre (FIC) as an accountable institution.Correct
- b) Register only with the FAIS Ombud, which administers anti-money-laundering law.
- c) Obtain a separate banking licence from the Reserve Bank before taking any client.
- d) Do nothing further, because FAIS authorisation automatically covers FIC obligations.
Why this is the answer
Accountable institutions must register with the FIC. FAIS authorisation does not discharge FIC obligations; the FIC Act is a separate regime requiring registration, customer due diligence, record-keeping, reporting and a compliance programme.
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