CISI UAE FRR Financial Crime & AML/CFT UAE 2

Question 1

A Politically Exposed Person (PEP) in UAE AML regulation refers to:

Accepted Answer

An individual entrusted with prominent public functions, domestically or internationally

Answer

PEPs are individuals entrusted with prominent public functions (heads of state, ministers, senior officials, judges, military officers) who pose higher ML/TF risks due to their potential for corruption.

Question 2

Under UAE AML regulations, what is the threshold for mandatory cash transaction reporting?

Accepted Answer

AED 40,000 or equivalent

Answer

Financial institutions and designated non-financial businesses must report cash transactions of AED 40,000 or more (or equivalent in other currencies) to the relevant authorities.

Question 3

The UAE's targeted financial sanctions regime requires financial institutions to:

Accepted Answer

Screen customers against UAEFIU and UN sanctions lists and freeze matching assets immediately

Answer

Financial institutions must screen against sanctions lists (including UN, OFAC, EU, and UAE lists), and upon a match must immediately freeze assets and report to the UAEFIU without tipping off the subject.

Question 4

What is 'trade-based money laundering' (TBML)?

Accepted Answer

Using international trade transactions to disguise and transfer illicit funds

Answer

TBML exploits import/export transactions — through over/under-invoicing, multiple invoicing, or falsely describing goods — to move and launder value across borders using the legitimate trade system.

Question 5

Under UAE AML law, a financial institution that fails to file an STR when required faces:

Accepted Answer

Administrative fines and potential criminal liability for officers

Answer

Failure to file a required STR can result in substantial administrative fines imposed by the regulator and potential criminal liability for responsible officers, reflecting the seriousness of the obligation.

CISI UAE FRR Practice Test

CISI UAE FRR Practice Test

CISI UAE FRR Financial Crime & AML/CFT UAE 2