Mr. Smith came to your office and asked to set up a trust for charitable purposes. The aim is to help underprivileged children in Africa with their education. After the trust is formed, donations were received from overseas countries and money was sent to various African countries for building schools. A few months later, Mr. Smith instructed you to transfer R1 000,000 to a personal bank account opened in a country known to be of terrorist concern. Mr. Smith said that the money is to buy material to build
schools in Africa. What should you do?

Should a staff member not get consent from a customer to collect personal information, they are in contravention of which legislation?

 Where an employee acts in such a way as to notify a client that a STR has been filed on their account, this is classified as

Your jewelry shop has a customer, Mrs. Tsao, who appears affluent and is interested in buying a number of luxury watches and jewelry accessories. You recently read an article in the newspaper suggesting Mrs. Tsao’s husband is a prominent triad figure who has allegedly made a lot of money out of the sale of pirated discs and other counterfeit products. Mrs. Tsao has spent over R6 million last year in your shop. All purchases are settled by personal cheques drawn on her husband’s account. What will be your best action?

 Who is categorised as a PIP

KYC is ____

Crimes related to racketeering can be prosecuted in terms of which Act?

Which of the following terms describe the process of sending money through multiple sources to make it difficult to track?

 In which stage of money laundering would you classify the use of laundered funds to purchase high value assets and luxury items?

In anti-money laundering terminology a “red flag” is….

Section 42 of FICA contains a long list of all

What is the reasoning behind implementing a “risk-based anti-money laundering approach?

Match the deadline to the report

Of the following scenarios, which two are potential red flags indicating possible suspicious activity that should be investigated further?

Which act expressly prohibits any person from dealing with property that is associated with acts of terrorism, with persons or organisations that carry out acts of terrorism or with entities that are sanctioned?

You will need the following documentation to register as an accountable or reporting institution

 a) A visible, certified copy of the user’s ID document or valid passport document

b) A signed authorisation letter from the user’s spouse

c) Proof of address

d) A signed authorisation letter on the entity’s letterhead (detailing the user’s full names, ID or Passport Number, role in the organisation and the authorized GOAML role

Choose the correct process to add a user for entities already registered with the FIC

What must the role / job description be of the first user to be added when registering an institution as an AI or RI?

User names and user email are unique and can only be used once. Each registered user as well as each registered entity must use a unique email. ​ Email addresses may not be shared or re-used.

What is Money Laundering?  

What are the key stages in Money Laundering?

Placement is the most dangerous stage in the money laundering process?

What does the abbreviation FICA stand for?

Is the following statement true or false?

 The responsibility to ‘ensure’ compliance rests with the accountable institution (and/or top management) itself and not its appointee. The appointed person’s role is only to ‘assist’ the accountable institution (and/or top management) in complying with the provisions of FICA.

Which of the following statements are true regarding an AML Compliance Officer?

Choose the correct statement

What is the program called that an accountable institution must develop, document, maintain and implement for anti-money laundering and counter-terrorist financing

What is the FIC’s registration and reporting platform called?

How much is the prescribed value for a transaction to be considered a “single transaction”

What does the abbreviation “KYC” stand for?

Should files from existing clients (prior to 1 July 2003) also contain a copy of the identity document?

 In terms of the identification process, will a photocopy or faxed copy of a document suffice?

In the case where an accountable institution is unable to perform Customer Due Diligence as contemplated in section 21, the institution —

What is the definition of a Legal person in terms of FICA?

Which of the following best defines regulatory risk?

A PEP should be treated as a…….

What does the abbreviation CTR stand for?

Analyse the following scenario and choose the most CORRECT answer

The client of a motor vehicle dealer (MVD), XYZ Motors, elects to pay in cash after purchasing a motor vehicle from XYZ Motors for the amount of R128 500. The MVD has a strict no cash policy and requests the client to pay the cash into XYZ Motors’ bank account at ABC Bank. ABC Bank receives the cash amount of R128 500. ABC Bank is an accountable institution as listed in Schedule 1 to the FIC Act and has a reporting obligation in terms of section 28 of the FIC Act to report this transaction.

XYZ Motors receives a bank deposit slip from the client which reflects the transaction that exceeded the prescribed threshold. XYZ Motors is a reporting institution as listed in Schedule 3 to the FIC Act. XYZ Motors “acquired knowledge” of the cash that went into its bank account.

What is the reporting period for a Cash Transaction above the prescribe limit

 If my business receives cash via an agent or third party, e.g. bank, who is responsible for the reporting in terms of section 28?

42. Interpret the FIC Act and consider the following statement:

 An employee of an accountable institution accepts money from a client, which is suspicious. What does the employee have to do according to the FIC Act?

What type of report must be submitted if a potential client refuses to provide the required client identification and verification documentation

What is willful blindness?

Can an institution continue transacting with a customer after a report in terms of section 29 of the FIC Act is submitted to the Centre?

Does a Cash Threshold Report replace other reports such as Suspicious and Unusual Transaction Reports and Terror Property Reports?

What is the laundering stage that separates the illicit money from its source, obscures the audit trail and severs links with the original crime to make it appear like a normal financial transaction called?

Select the potential risks to the company if you fail to implement counteractive measures in preventing AML

Match the following descriptions with their abbreviation

Which of the following statements is true regarding the legal obligation for record-keeping?

What is meant by the term “Proliferation Financing”?