CISI UAE FRR Financial Crime Prevention 2

Question 1

What is sanctions screening and why is it important for UAE financial institutions?

Accepted Answer

Checking customers and transactions against international sanctions lists to prevent prohibited dealings

Answer

Sanctions screening involves checking customers, counterparties, and transactions against sanctions lists issued by the UN, US (OFAC), EU, and UAE to ensure the institution does not facilitate prohibited dealings.

Question 2

What is the Designated Non-Financial Businesses and Professions (DNFBPs) obligation under UAE AML law?

Accepted Answer

Real estate agents, dealers in precious metals, lawyers, and auditors must also comply with AML/CFT requirements

Answer

UAE AML law extends AML/CFT obligations beyond financial institutions to DNFBPs including real estate agents, dealers in precious metals and stones, lawyers, notaries, and auditors.

Question 3

What is transaction monitoring and how must UAE institutions implement it?

Accepted Answer

Using automated systems to detect unusual patterns and flag potentially suspicious transactions for review

Answer

UAE regulations require financial institutions to implement automated transaction monitoring systems that detect unusual patterns, flag potentially suspicious activity, and generate alerts for human review and potential SAR filing.

Question 4

What is the UAE's approach to combating terrorism financing?

Accepted Answer

A comprehensive framework including criminalization, freezing of terrorist assets, and international cooperation

Answer

The UAE has established a comprehensive counter-terrorism financing framework including criminal penalties, mechanisms for freezing terrorist assets without delay, and active participation in international cooperation.

Question 5

What is the role of the UAE's National Anti-Money Laundering Committee (NAMLC)?

Accepted Answer

To coordinate national AML/CFT policies, conduct national risk assessments, and oversee implementation of AML strategy

Answer

NAMLC coordinates the UAE's national AML/CFT policy framework, conducts national risk assessments, and oversees the implementation of the national strategy to combat money laundering and terrorism financing.

CISI UAE FRR Practice Test

CISI UAE FRR Practice Test

CISI UAE FRR Financial Crime Prevention 2