Prevention of Money Laundering and Countering the Financing of Terrorism Flashcards
what does AML stand for?
Anti money laundering
what does CFT mean?
Countering the financing of terrorism
what does CDSA mean?
Corruption, drug trafficking, and other serious crimes Act
meaning of TSOFA
Terrorism (Suppression of Financing) Act
if an agent finds their client suspicious of terrorist financing or money laundering, what should they do?
lodge a Suspicious Transaction Report (STR) with the Transaction Reporting Office of Commercial Affairs Department (CAD)
where to lodge a STR?
SONAR. STRO Online Notices and Reporting.
what is the sequence in money laundering?
Placement > Layering > Integration
for what/when does an agent have to conduct customer due diligence?
for all transactions. to verify their client’s identity by asking them to fill out the Customer’s Particulars form
what is the Salesperson’s Checklist on CDD?
it’s a checklist for customer due diligence
the agent has to fill the Salesperson’s Checklist on Customer Due diligence for what kind of transaction(s) ?
for all sale and purchase , and rental transactions
client still has to fill up particulars form and CDD for ongoing relationship?
yes, but only for the initial transaction.
Subsequently can conduct in regular intervals
If client is a CEO or publicly known figure, they do not have to fill the Customer’s Particular Form and CDD. True/False?
False. they still have to fill as the risk is higher for these people
what are the 3 conditions to be fulfilled by a third party such that the agent in charge will not have to conduct another CDD on the same client?
- third party gives info without delay
- CDD is immediately obtained from third party
- Third party is also regulated and supervised for compliance w ML and TF requirements
what if the client refuses to answer the CDD?
Cease dealing w the client, lodge a STR
what is CAD?
Commercial Affairs Department
