Transfer Agency Administration and Oversight Quiz 05

Last Updated: June 2024

Table of Contents

Transfer Agency Administration and Oversight
Element 4:
– Controls
– know examples of trigger events
– understand the controls a firm should have in place to minimise its risk to fraud, money

laundering and terrorist financing including a training programme

– know the criteria for an effective suspicious transaction reporting system
– know the responsibilities of directors and senior management in relation to anti-

money laundering (AML), combating financial crime (CFC) and anti-corruption (AC) initiatives
– know the role of the Money Laundering Reporting Officer (or equivalent) in relation

to financial crime
– understand the implications of using a risk-based approach to identify money

laundering
– know:
• the rationale behind sanctions screening
• the purpose behind screening individuals

– Cyber Risk Management
On completion, the candidate should:
– know the concept of good online practice
– know the additional measures financial services firms can take to manage the risk of

cybercrime originated or enabled by an employee:
• raising awareness
• improving the management of privileges for joiners, movers and leavers
• classifying and segmenting data
• embedding ethical practice in relation to data security
• implementing whistleblowing procedures

– Practical Implications for Transfer Agencies

– know the FCA definition of conduct risk and how it is addressed within transfer

agencies
– understand how service level agreements (SLAs) play an important role in transfer

agency business with respect to managing regulatory and other risks

Element 5:
Managing TA Operations
– Anti-Money Laundering (AML) & Know your Customer (KYC)
On completion, the candidate should:
– know the TA forum’s guidance with respect to risk rating investors
– know the implications of the 5th money-laundering directive
– know operational best practice and regulatory requirements for:
• investor bank validation checks
• AML due diligence assessment
• ongoing monitoring
• third party payers
– know operational best practice and regulatory requirements for:
• electronic identification standards for opening online accounts
• electronic verification techniques
– know operational best practice and regulatory requirements for bank verification

checks
– know required due diligence and AML checks for:
• corporate clients
• trusts
• charities
• third party payers
– know regulatory requirements relating to:
• sanctions
• politically exposed persons (PEPs)

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