All RE5 questions
FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
Sizwe notices a transaction pattern that has no apparent lawful purpose and looks like it may involve the proceeds of crime. Under the FIC Act, what must he do?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) File a suspicious and unusual transaction report (STR) with the FIC, and not tip off the client that a report has been made.Correct
- b) Confront the client directly and demand an explanation before doing anything else.
- c) Wait until the amount exceeds the cash threshold before reporting anything.
- d) Report it to the FAIS Ombud, who investigates money laundering.
Why this is the answer
Suspicious or unusual activity must be reported to the FIC as an STR within the prescribed period. 'Tipping off' the client is itself an offence. The duty is suspicion-based and applies regardless of the amount; the Ombud does not handle money-laundering reports.
Want to test yourself on 700+ more questions like this?
Start your free RE5 simulator today — timed mock exams, full answer explanations and cloud-synced progress tracking.
More FIC Act questions
- Mahlatse Brokers is an authorised FSP that also falls within the definition of an 'acco…
- Under the FIC Act, when must an accountable institution establish and verify a new clie…
- A client of Boitumelo's firm deposits cash above the prescribed cash-threshold amount.…
- Which document must every accountable institution develop, document and keep up to date…