RES exam question on AML / CFT: A company (not an individual) instructs a salesperson to buy a property
Case study: A company (not an individual) instructs a salesperson to buy a property; one of its directors is a senior foreign government official. Which is/are correct? (i) CDD requires identifying and verifying the beneficial owners behind a corporate buyer (ii) A politically exposed person (PEP) connected to the buyer triggers enhanced due diligence (iii) CDD is only required for individual buyers, not companies (iv) AML records must be kept for the prescribed retention period
- A(i) and (ii) only
- B(ii), (iii) and (iv) only
- C(i), (ii) and (iv) only
- DAll of the above
Show answer & explanation
Answer
C. (i), (ii) and (iv) only
Explanation
Issue: How do AML duties apply to a corporate buyer with a PEP-linked director? Rule: CDD applies to corporate buyers and requires identifying/verifying the beneficial owners; a PEP connection triggers enhanced due diligence; and AML records must be retained for the prescribed period. Application: Beneficial-owner CDD (i); PEP → enhanced due diligence (ii); record retention (iv). Conclusion: (i), (ii) and (iv) are correct.
Why the other options are wrong
- The trap is (iii): CDD is not limited to individuals — it applies to corporate buyers too.
Study the concept behind this question: AML/CFT for Property Agents: CDD, Source of Funds & STR
Practise more Anti-Money Laundering (PMLPFTF) questions
Drill the full Anti-Money Laundering (PMLPFTF) bank with instant answers and explanations — free to start, no card needed.
Related Anti-Money Laundering (PMLPFTF) questions
Get each day's lesson free — one RES topic + the trap, every day on Telegram.
Join @resprepsg →Original study material mapped to the public CEA RES syllabus. Verify any rate-based figures against current IRAS/CPF/MAS rules before relying on them.