AML/CFT Compliance Quiz-Real Estate

What does AML/CFT stand for?

• Anti-Money Laundering / Counter Financing of Terrorism

• Avoid Money Laundering / Counter Fraud Training

• Address Money Laundering / Criminal Funding Training

• Anti-Money Laundering / Criminal Financial Training

Which government entity is responsible for overseeing AML/CFT compliance in the UAE for DNFBPs?

• Ministry of Interior

• Ministry of Economy

• Central Bank of the UAE

• Financial Action Task Force (FATF)

What is the threshold value for cash transactions that must be reported by DNFBPs in the UAE?

• AED 55,000

• AED 40,000

• AED 100,000

• AED 200,000

Which of the following is a key obligation for DNFBPs under UAE AML laws?

• Offering discounts for cash payments

• Conducting periodic financial audits

• Filing Suspicious Transaction Reports (STRs) when necessary

• Avoiding all business with high-net-worth individuals

What is the primary goal of CDD (Customer Due Diligence)?

• To identify suspicious transactions after they occur

• To verify the identity of customers and assess associated risks

• To create marketing strategies for high-value customers

• To monitor staff compliance with AML regulations

Which of the following is considered a red flag in real estate transactions?

• A buyer provides clear proof of income and funds

• A customer insists on making a transaction in cash for a high-value property

• A buyer submits all required documents promptly

• A buyer's funds come from a verifiable loan institution

Which action should raise suspicion during a property sale?

• The client requests to structure the payment into smaller transactions.

• The client provides legitimate documents of identification.

• The client asks for a detailed breakdown of property costs.

• The client uses a personal bank account to pay.

If a client is reluctant to provide information about the source of funds, what should you do?

• Proceed with the transaction

• Delay the transaction until further clarification is received

• File an STR immediately

• Refuse the transaction and report it

A foreign buyer provides multiple offshore accounts as sources of payment. What should this trigger?

• No further action, as offshore accounts are common

• Additional due diligence and possibly filing an STR

• Immediate acceptance of payment

• Cancelation of the transaction

Which of the following may indicate the risk of terrorist financing in real estate?

• Payments made using a mix of local and international funds without a clear purpose

• Payments sourced only from local, verified accounts

• A client purchasing a property for personal residence

• A transaction conducted through regulated financial institutions