F ICA AWARENESS TR AINING AND T EST
[FSP NAME ]
An Authorised Financial Services Provider (FSP )
NAME
POSITION IN FSP
DATE
Allocate 1 mark for each correct answer. A pass mark is considered to be 18 of out of 30, being 60%.
QUESTION
ANSWER
MARK
ALLOCATED
1
a
b
c
What does the abbreviation “FICA” stand for?
Financial Information Compliance Act
Financial Intelligence Centre Act
Financial Intelligence Communication Act
2
a
b
c
d
What are the basic principles of money laundering detection and investigation?
Advisers are to know with whom they are doing business
Records must be kept of transactions
Possible money laundering activities must be reported
All of the above
3
a
b
c
Which of the following are defined as an accountable institution ito FICA?
Short-term only brokerage
Health and medical aid brokerage
Life and investment brokerage
4
a
b
c
Which of the following factors are considered in differentiating between low, medium and high risk clients?
Product type, salary, number of dependants
Business activity, age of the client
Source of funds, jurisdiction of client, type of entity
5
a
b
c
What is the risk rating for a SA Company entering into a long-term insurance policy with savings of R2 500-00 per
month?
10
20
40
6
a
b
c
What does the abbreviation “KYC” stand for?
Keep Your Client
Know Your Company
Know Your Client
7
a
b
c
What is a“PEP”?
A well-known SA clothing store
Potentially Exposed Person
Politically Exposed Person
8
a
b
c
d
Which of the following persons are considered to be PEPs?
Judge of the High Court of South Africa
Senior military ranking officer
Personal adviser of senior political officials
All of the above
QUESTION
ANSWER
MARK
ALLOCATED
9
a
b
c
d
Which verification documentation is necessary for identification of SA citizens and residents?
Mortgage statement
Cellular account
TV license
All of the above
10
a
b
c
Who must be identified and verified in the case of a person acting on behalf of another person?
Both
The nominated person
The person he acts on behalf of
11
a
b
c
d
What additional verification must be conducted for a person acting on behalf of another person?
Power of Attorney
Mandate
Court order
Any one of the above
12
a
b
In the case of non face-to-face transactions may faxed or scanned copies of documents be accepted?
Yes
No
13
a
b
c
In the case where a person is unable to produce an official identity document, which of the following other documents
may not be accepted?
Driver’s license
Passport
Golf club membership
14
a
b
c
d
FSPs may use other measures to verify a client’s address if none of the usual documents are available:
Confirmation of address by employer
Declaration by person co-habiting with client
Declaration by adviser after physically visiting the residential address
All of the above
15
a
b
Should files for existing clients also contain a copy of the identity document?
Yes
No
16
a
b
c
For what period must records regarding transactions be kept?
Five years from date of termination of business relationship
Five years from date single transaction was entered into
All of the above
17
a
b
c
What is the offence for failing to identify persons or keep related documents?
R5 million and 5 years imprisonment
R10 million or 10 years imprisonment
R100 million or 15 years imprisonment
18
a
b
c
What is the offence if no FIC training is conducted?
R10 million or 5 years imprisonment
R1 million and 10 years imprisonment
R5 million or 15 years imprisonment
19
a
b
c
What is the cash threshold amount that must be reported in terms of section 28?
More than R25 000-00
More than R24 999-99
More than R50 000-00
20
a
b
c
When must a cash threshold report be sent to the Centre?
As soon as possible
As soon as possible but not later than 2 days after becoming aware of transaction
Within 3 days
QUESTION
ANSWER
MARK
ALLOCATED
21
a
b
c
How should you report a suspicious and unusual transaction?
By telephone
By e-mail
Internet based reporting at www.fic.gov.za
22
a
b
Are you allowed to continue with a transaction for which a report has been made to FIC?
Yes
No
23
a
b
c
When must a report regarding a suspicious and unusual transaction be made?
Within two weeks
Not longer than 20 days
Within a period of 15 working days
24
a
b
Can a person be forced to give evidence in court of law regarding a report made?
Yes
No
25
a
b
Does FIC prescribe the format of training or endorse a specific training institution?
Yes
No
26
a
b
c
What does the abbreviation “MLRO” stand for?
Money Legal Reporting Official
Money Laundering Reporting Officer
Manager Legal Relations Officer
27
a
b
c
Who should be appointed as MLRO of the FSP?
External compliance officer
Personal assistant
Key individual
28
a
b
Is electronic registration with FIC a legal requirement?
Yes
No
29
a
b
Are you exempted from Part 1 and 2 of the FIC Regulations where a long-term insurance policy is surrendered within
three years of its commencement and the surrender value does not exceed 20% of the value of the premiums paid?
Yes
No
30
a
b
c
d
What is the penalty for not electronically registering with FIC?
R10 million
Five years imprisonment
Administrative sanction
Any of the above
TOTAL
%
SIGNATURE
SIGNATURE OF KEY
INDIVIDUAL
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NAME
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NAME OF KEY
INDIVIDUAL