CAMS · Question #516
According to the Financial Action Task Force, as part of their risk assessment, which are important data and information that a Trust and Company Service Provider must understand when establishing…
The correct answer is A. The responsibility and authority in the structure D. The general purpose behind the structure. Here is the exact information from the Financial Action Task Force (FATF) Guidance for a Risk- Based Approach for Trust and Company Service Providers: "Understanding the management and ownership structure of a trust is crucial in assessing the ML/TF risk it poses. This includes…
Question
According to the Financial Action Task Force, as part of their risk assessment, which are important data and information that a Trust and Company Service Provider must understand when establishing and administering a trust? (Select Two.)
Options
- AThe responsibility and authority in the structure
- BThe management structure of the trust
- CThe source of funds in the structure
- DThe general purpose behind the structure
- EThe general nature of business of the trust
How the community answered
(23 responses)- A78% (18)
- B4% (1)
- C13% (3)
- E4% (1)
Explanation
Here is the exact information from the Financial Action Task Force (FATF) Guidance for a Risk- Based Approach for Trust and Company Service Providers: "Understanding the management and ownership structure of a trust is crucial in assessing the ML/TF risk it poses. This includes the identity of all settlors, trustees and beneficiaries, and their respective roles and responsibilities, as well as the nature and purpose of the trust." "TCSPs should obtain and maintain up-to-date information on the purpose and intended nature of the business relationship, the source of funds and wealth, and where relevant, the source of funds or wealth of the settlor and beneficiaries."
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