Module 5 - FICA TRAINING TEST - Risk-Based Approach (30 November 2023)

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* 1. What change did the Financial Intelligence Centre Amendment Act introduce with regards to the approach that Accountable Institution must follow?

(a) From rule-based approach to risk-based approach

(b) From risk-based approach to rule-based approach

(c) From relevance-based approach to rule-based approach

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* 2. Is the following statement True or False? "A Rule-Based Approach means that the Accountable Institution identify and assess the Money Laundering and Terrorist Financing risks to which they are exposed, monitor those risks, mitigate those risks by taking the appropriate mitigation measures in accordance with the level of each risk and thereby manage the risk"

(a) True

(b) False

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* 3. Is the following statement True or False? "The Rule-Based Approach is a "zero failure" approach and if an Accountable Institution has taken all reasonable measure to identify and mitigate Money Laundering/Terrorist Financing risks, the risks will not materialise"

(a) True

(b) False

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* 4. Choose the correct statement regarding Customer Due Diligence:

(a) A simplified Customer Due Diligence may be implemented for clients where the risks are assessed as low

(b) Where the risks are higher, an enhanced Customer Due Diligence should be implemented

(c) All of the above

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* 5. Is the following statement True or False? "An Accountable Institution's identification and assessment of its own Money-Laundering/Terrorist Financing risk should consider national risk assessments and take account of the national legal and regulatory framework, including any areas of prescribed significant risk and any mitigation measures defined at the legal or regulatory level"

(a) True

(b) False

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* 6. Add your name and Surname