All RE5 questions
FIC Act FIC Act Compliance (CDD, AML/CFT, Reporting)
Which of the following transactions would most likely trigger a suspicious-transaction report rather than a cash-threshold report?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) A series of structured deposits just under the reporting threshold with no apparent lawful purpose.Correct
- b) A single salary deposit from a known employer.
- c) A routine debit-order premium payment.
- d) A normal monthly transfer the client has made for years.
Why this is the answer
Deliberate structuring to stay under the threshold, with no apparent legitimate purpose, is a hallmark of suspicious activity and warrants an STR. Ordinary salary, debit-order and routine transfers are not, by themselves, suspicious.
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.…
- Sizwe notices a transaction pattern that has no apparent lawful purpose and looks like…