CISI UAE FRR UAE Financial Regulation Framework 2

Question 1

What does the term 'passporting' mean in the context of UAE financial regulation?

Accepted Answer

Allowing a firm licensed in one UAE free zone to operate in another without a separate licence

Answer

Issuing travel documents for financial professionals

Answer

Transferring client funds across borders

Answer

Registering a foreign bank branch in the UAE

Question 2

The UAE's AML/CFT supervisory framework assigns primary AML oversight of banks to which body?

Accepted Answer

Central Bank of the UAE (CBUAE)

Answer

UAE Financial Intelligence Unit (UAEFIU)

Answer

Ministry of Economy

Answer

Abu Dhabi Executive Council

Question 3

Which principle underpins the UAE's risk-based approach to financial regulation?

Accepted Answer

Allocating supervisory resources proportionate to assessed risk

Answer

Applying identical rules to all financial institutions

Answer

Regulating only systemically important banks

Answer

Focusing oversight exclusively on foreign-owned firms

Question 4

Which international standard-setting body's capital adequacy framework has the UAE adopted for banks?

Accepted Answer

Basel Committee on Banking Supervision (Basel III)

Answer

International Organisation of Securities Commissions (IOSCO)

Answer

Financial Stability Board (FSB)

Answer

AAOIFI

Question 5

What is the UAE's primary piece of legislation addressing financial crimes broadly?

Accepted Answer

Federal Decree-Law No. 20 of 2018 on AML/CFT

Answer

Federal Law No. 35 of 1992

Answer

Federal Law No. 14 of 2018

Answer

Cabinet Resolution No. 10 of 2019

Question 6

The UAE National Risk Assessment (NRA) is used to:

Accepted Answer

Identify and assess money laundering and terrorism financing risks nationally

Answer

Set interest rate policy

Answer

Determine licensing fees for financial institutions

Answer

Allocate government investment funds