All RE5 questions
FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
A Representative submits a Suspicious Transaction Report (STR) to the FIC. They must NOT inform the client that a report has been filed. This is a crucial FIC Act principle known as:
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Client Confidentiality.
- b) Record Keeping.
- c) Tipping-Off Prohibition.Correct
- d) Risk-Based Approach.
Why this is the answer
The FIC Act (Sec 29(3)) contains the 'Tipping-Off Prohibition'. This rule makes it a criminal offence to inform (or 'tip off') a client or any unauthorized person that an STR has been filed, as this could compromise the subsequent investigation.
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