CISI UAE FRR Financial Crime & AML/CFT UAE 4

Question 1

The FATF's Mutual Evaluation of the UAE resulted in:

Accepted Answer

Placement on the 'Grey List' in 2022 and removal in 2024 after significant reforms

Answer

The UAE was placed on the FATF Grey List (Jurisdictions under Increased Monitoring) in 2022 due to strategic deficiencies, but was removed in 2024 following substantial legislative and enforcement reforms.

Question 2

Which type of AML risk assessment focuses on individual customers rather than the institution?

Accepted Answer

Customer risk assessment (part of CDD)

Answer

Customer risk assessments evaluate the ML/TF risk posed by individual customers based on factors such as their profile, products used, transaction patterns, and country of origin, forming part of CDD.

Question 3

Under UAE AML regulations, 'proliferation financing' refers to:

Accepted Answer

Financing the development, acquisition, or transfer of weapons of mass destruction

Answer

Proliferation financing involves providing funds or financial services for the development, production, acquisition, or transfer of WMDs including nuclear, chemical, and biological weapons.

Question 4

What is the difference between an STR (Suspicious Transaction Report) and an SAR (Suspicious Activity Report)?

Accepted Answer

STR focuses on specific transactions; SAR covers broader suspicious behaviour or activity patterns

Answer

While the terms are often used interchangeably, STRs relate to specific suspicious transactions, whereas SARs may capture broader patterns of suspicious activity not tied to a single transaction.

Question 5

The UAE's 'Beneficial Owner' threshold for mandatory identification of company owners is:

Accepted Answer

25% ownership or control

Answer

UAE regulations require identification of any natural person owning 25% or more of a legal entity's shares or voting rights, or exercising equivalent control, as a beneficial owner.

CISI UAE FRR Practice Test

CISI UAE FRR Practice Test

CISI UAE FRR Financial Crime & AML/CFT UAE 4