Question

Which of the following activities do the MLR require a firm to do?

a) Perform appropriate identification checks on all new accounts
b) Keep accurate records of transactions for five years
c) Provide appropriate training to all staff

Answer 1

The MLR requires a firm to perform identification checks, keep transaction records, and provide training to staff.

Step-by-step explanation:

The MLR stands for Money Laundering Regulations and is a set of rules and regulations that require businesses, including banks, to take certain actions to prevent money laundering and terrorist financing.

Out of the given activities, all three (a, b, and c) are required by the MLR for a firm.

1. Perform appropriate identification checks on all new accounts: Banks and other firms need to verify the identity of their customers to ensure they are not involved in any illegal activities.
2. Keep accurate records of transactions for five years: Firms must maintain records of their transactions, which can assist in investigations if any crimes are suspected.
3. Provide appropriate training to all staff: Employees must receive proper training to understand how to detect and prevent money laundering activities.

The Money Laundering Regulations (MLR) require a firm to engage in a number of key compliance activities:

Perform appropriate identification checks on all new accounts, to ensure that the entity opening the account is legitimate and to prevent financial crimes such as money laundering and terrorist financing.

Keep accurate records of transactions for a minimum of five years, which can be essential in tracing funds and assisting legal investigations.

Provide appropriate training to all staff to ensure they are aware of the firm's compliance procedures and their own responsibilities within these procedures.