CMFAS RES 1A Prevention of Financial Crimes (AML/CFT) question: FI onboarding a private investment company

CMFAS RES 1APrevention of Financial Crimes (AML/CFT)

An FI onboarding a private investment company should, to identify beneficial owners, primarily:

A Accept the registered company name as the beneficial owner on file
B Identify the natural persons who ultimately own or control it through the ownership chain
C Rely solely on the company's audited accounts and its auditor's opinion on ownership
D Treat the named director as always being the sole beneficial owner, without further checks

Show the answer and explanation

Answer: B. Identify the natural persons who ultimately own or control it through the ownership chain

The FI must look through the corporate structure to identify the natural person(s) holding a controlling ownership interest or otherwise exercising control. Where no such person can be identified, the FI identifies the natural person exercising control through other means or holding a senior management position.

Common mistake

A director is not automatically the beneficial owner — control/ownership must be traced to natural persons.

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Study note: Prevention of Financial Crimes (AML/CFT)CMFAS RES 1Apractice questions & mock exams

Related CMFAS RES 1A questions

The study guides append a list of examples of suspicious transactions (Appendix E in RES 2B, Appendix F in RES 1B). Which of the following appear there?Meridian Capital onboarded Harbourline Pte Ltd in 2023, when its beneficial owner Mr Oh was a private businessman. In August 2026 the firm's periodic database scan flags that Mr Oh has been appointed chief executive of a state-owned corporation. The relationship manager says nothing needs to change because Mr Oh was screened when the account was opened. What must the firm do?A CMI opened an account under its deferred-verification policy so as not to interrupt time-critical trades. On business day 35 after the account was opened, verification is still incomplete. What does the study guide require?

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Original study material mapped to the public CMFAS RES 1A syllabus. Unofficial, not endorsed by MAS or IBF. Verify figures and rules against current guidance before relying on them.