All RE5 questions
FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
A Representative observes a client trying to structure a cash deposit of R90,000 into three separate R30,000 transactions at different branches within a short period. This activity should trigger which type of report?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Cash Threshold Report (CTR).
- b) Fraudulent Transaction Report (FTR).
- c) Property of a Terrorist Report (POTR).
- d) Suspicious or Unusual Transaction Report (STR).Correct
Why this is the answer
The FIC Act (Sec 29) requires an STR for any suspicious or unusual transaction. 'Structuring' (breaking up a large transaction into smaller ones to avoid detection, even if they are below the CTR threshold) is a classic money laundering technique. The suspicious *nature* of the activity triggers an STR.
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