FICA Flashcards
1
Q
What is the purpose of FICA?
A
- Establish a FIC to combate money laundering activities and the financing of terrorist and related activities;
- Impose duties on institutions and other persons who might be used for money laundering purposes;
- Provide for customer due diligence measures (including re beneficial ownership and persons in prominent positions);
- Provide for a risk-based approach to client ID and verification;
- Provide for risk management and compliance programmes.
2
Q
What does FICA require of an accountable institution, which includes an Attorney, regarding a person you deal with?
A
Cannot establish a business relationship or conclude a single transaction with a client unless you have taken the prescribed steps (sec 21):
- to establish & verify the client’s ID
- to establish & verify the ID and authority of the person acting on behalf of the client
- to establish & verify the ID and authority of person on whose behalf the client is acting
- Must follow a risk-based approach
- In your risk management & compliance programme, must deal with the types of docs to be obtained from the diff categs of persons under different circumstances
3
Q
What other duties does an Attorney have under FICA?
A
- Keep detailed records of clients, business relationships and of transactions for a specified period;
- (a) Make the records available to FIC (with a warrant)
(b) if FIC requests it, confirm the existence of a current/ past mandate
(c) Report cash transactions above a prescribed amount