CISI UAE FRR Financial Crime & AML/CFT UAE 3

Question 1

The 'Travel Rule' under FATF Recommendation 16 requires:

Accepted Answer

Originator and beneficiary information to accompany wire transfers

Answer

The Travel Rule requires financial institutions to collect, retain, and transmit originator and beneficiary information with wire transfers, enabling law enforcement to trace the flow of funds.

Question 2

Under UAE AML regulations, 'ongoing monitoring' of customers requires:

Accepted Answer

Continuous scrutiny of transactions and periodic review of CDD information

Answer

Ongoing monitoring requires scrutinising transactions to ensure consistency with the customer's profile and risk level, and periodically updating CDD information, particularly for higher-risk customers.

Question 3

What is a 'shell company' in the context of AML typologies?

Accepted Answer

A company with no real operations used to obscure beneficial ownership

Answer

Shell companies have no significant assets or operations but are used to create layers of ownership that obscure the identity of the true beneficial owner, facilitating money laundering and tax evasion.

Question 4

The UAE's Executive Office for Control and Non-Proliferation (EOCN) oversees:

Accepted Answer

Targeted financial sanctions and proliferation financing risks

Answer

The EOCN coordinates the implementation of targeted financial sanctions and oversees the UAE's strategy to combat proliferation financing, working with financial institutions to freeze designated assets.

Question 5

Under UAE AML law, which party bears responsibility for ensuring AML/CFT compliance within a financial institution?

Accepted Answer

Senior management and the Board of Directors

Answer

Ultimately, senior management and the Board are responsible for the institution's AML/CFT framework, culture, and compliance programme, while the compliance function assists in implementation.

CISI UAE FRR Practice Test

CISI UAE FRR Practice Test

CISI UAE FRR Financial Crime & AML/CFT UAE 3