FTT AML/CFT Compliance 2

Question 1

What is 'tipping off' in the context of AML/CFT compliance?

Accepted Answer

Disclosing to a customer that an STR has been filed or that they are under investigation for money laundering

Answer

Tipping off is the serious offence of disclosing to a person who is the subject of an STR, or to others, that a report has been filed or that an investigation is underway. It is a criminal offence under the CDSA as it could prejudice ongoing investigations.

Question 2

What is the minimum record retention period for AML/CFT customer due diligence records in Singapore?

Accepted Answer

5 years after the business relationship ends or the transaction is completed

Answer

Under MAS Notice requirements aligned with FATF recommendations, financial institutions must retain CDD records and transaction records for a minimum of 5 years after the business relationship ends or the transaction is completed.

Question 3

What is the risk-based approach to AML/CFT?

Accepted Answer

Allocating more rigorous due diligence to higher-risk customers, products, and geographies, and proportionately lighter controls to lower-risk situations

Answer

The risk-based approach requires financial institutions to identify, assess, and understand their ML/TF risks, and apply controls proportionate to those risks — more scrutiny for higher-risk situations and streamlined processes for lower-risk ones.

Question 4

What is a 'beneficial owner' in AML/CFT due diligence?

Accepted Answer

The natural person who ultimately owns or controls a legal entity or on whose behalf a transaction is being conducted

Answer

A beneficial owner is the natural person (individual) who ultimately owns or controls a legal entity (such as a company or trust) or on whose behalf a transaction is being conducted, even if legal ownership is in the name of another person or entity.

Question 5

Under the Terrorism (Suppression of Financing) Act, what is criminalised?

Accepted Answer

Providing funds, assets, or financial services to terrorists or terrorist entities

Answer

The TSOFA criminalises the financing of terrorism in Singapore, including providing or collecting funds, assets, or financial services that are intended or known to be used to carry out terrorist acts, whether the act occurs in Singapore or overseas.

Singapore FTT Practice Test

Singapore FTT Practice Test

FTT AML/CFT Compliance 2