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CKYCA Actual Questions - Instant Download 72 Questions

NEW QUESTION # 10
Why is Private Banking Higher Risk? (SELECT 2)

• A. They use Transactions that attempt to mask true ownership.
• B. They almost exclusively use structures that are on secretive jurisdictions.
• C. Transactions may be confidential.
• D. They use products which are designed for clients with a greater risk tolerance.

Answer: A,C

NEW QUESTION # 11
The minimum level of Customer Due Diligence that is required when opening a new account includes the following? (SELECT 4)
What type of locations is the account going to be transacting with. (Correct)
Why this account is being opened? (Correct)
What type of people does the customer associate with?

• A. What sorts of transactions you should anticipate?
• B. The frequency and expected amounts of those transactions?

Answer: A

NEW QUESTION # 12
Which documents rates countries based on their money laundering controls and corruption? (SELECT 2)

• A. Transparency International's Corruption Perceptions Index
• B. US State Department's annual International Narcotics Control Strategy Report
• C. Financial Action Task Forces red flags related to jurisdiction risk
• D. United Nations report on Money Laundering Controls
• E. Transparency International's Corruption Perceptions Index

Answer: A,B

NEW QUESTION # 13
What stage is the explore step in the 4 step process with regards to the 4-step research model?

• A. 3rd.
• B. 2nd.
• C. 4th.
• D. 1st.

Answer: B

NEW QUESTION # 14
What is the purpose of having controls to Know Your Customer, also known as KYC?

• A. Manage the compliance risk of your organization.
• B. Manage the financial crime risk to your customer.
• C. Manage the financial crime risk to your organization.
• D. Manage the compliance risk of your customer.

Answer: C

NEW QUESTION # 15
What are the two types of Politically Exposed Persons (PEPS) that are identified by The Financial Action Task Force? (SELECT 2)

• A. Foreign PEPs are individuals who are or have been entrusted with prominent public functions by a foreign country.
• B. Foreign PEPs are individuals who are or have been entrusted with prominent public functions by a domestic country.
• C. Domestic PEPs are individuals who are or have been entrusted domestically with prominent non-public functions.
• D. Domestic PEPs are individuals who are or have been entrusted domestically with prominent public functions.

Answer: A,D

NEW QUESTION # 16
When is Enhanced Due Diligence (EDD) used?

• A. If lower risk of easy to assess.
• B. if higher risk or difficult to assess.
• C. Financial Institutions use EDD only when the product trigger event.
• D. Financial Institutions use EDD only when the geographical trigger event.

Answer: B

NEW QUESTION # 17
Why can Trusts pose a higher risk from a financial crime perspective?

• A. They can be used to mask the true owner and actual business purpose.
• B. They are in a physical paper form and ownership is controlled by the person who possesses the physical paper in hand.
• C. The trustee can use a trust in order to commit financial crime.
• D. There is no major risk from a financial crime perspective? they are legitimate business instrument and that's why they are legal all around the world including in the United States, and Europe.

Answer: A

NEW QUESTION # 18
If an organization suspects that a customer is laundering money, or committing other types of financial crime, it has a duty to report it to the authorities? (TRUE OR FALSE)

• A. True.
• B. False

Answer: A

NEW QUESTION # 19
What a is supranational organization below? (SELECT 3)

• A. Australian Transaction Reports and Analysis Centre.
• B. Singapore's Ministry of Law.
• C. World Trade Organization
• D. United Nations
• E. European Union.

Answer: C,D,E

NEW QUESTION # 20
An individual customer with a regular job and a salary opening a savings account would be?

• A. Unable to determine with that information.
• B. Low Risk.
• C. High Risk.
• D. Medium Risk.

Answer: B

NEW QUESTION # 21
What is the advantage of Bearer Shares? (SELECT 3)

• A. They are an excellent, quick effective way to set up a business in Delaware, Nevada, and Wyoming
• B. They can't be traced to a central registry because whoever carries them is the purported owner.
• C. They are a more affordable way of setting up a business in certain countries in the Caribbean.
• D. Tax haven countries and their strict secrecy laws can further conceal the true ownership.
• E. They can be held under agreement by professionals as another layer of secrecy.

Answer: B,D,E

NEW QUESTION # 22
Control activities in financial crime prevention include? (SELECT 3)

• A. Corrective controls.
• B. Detective Controls.
• C. Incorrect Controls
• D. Premeditated Controls
• E. Preventative Controls.

Answer: A

NEW QUESTION # 23
A person disclosing to any other person, information or any other matter, which is likely to prejudice a money laundering investigation is known to be?

• A. Dipping off
• B. Tipping off
• C. Ripping off
• D. Dripping off

Answer: B

NEW QUESTION # 24
What of the following countries are considered Tax Havens? (SELECT 2)

• A. Cayman Islands.
• B. Barbados.
• C. United States Virgin Islands.
• D. British Virgin Islands.

Answer: A,D

NEW QUESTION # 25
Under a risk based approach is a PEP risk manageable If a customer discloses during the KYC, or Know Your Customer process?

• A. No, PEPs do not need to disclose their status, it is up to the financial institution to find that information out and determine the risk.
• B. Yes, He or she is the spouse of a government official, closely related to the government official
• C. No, PEPS are do not fit within the risk tolerance of an organization.
• D. Yes, PEPS need bank accounts and access to financial investment products like everyone else.

Answer: B

NEW QUESTION # 26
When is comes to Enhanced Due Diligence (EDD) regulators require you to do a perfect job on the client.

• A. TRUE.
• B. FALSE.

Answer: B

NEW QUESTION # 27
Usually, the risk associated with the customer can be higher if the customer is nonresident?

• A. Yes
• B. Depends
• C. No

Answer: A

NEW QUESTION # 28
A shell company or corporation is a company that, at the time of incorporation, has no significant? (SELECT 2)

• A. Funds.
• B. Operations.
• C. Employees.
• D. Assets.

Answer: B,D

NEW QUESTION # 29
For the second prong, the control prong, an organization must collect the identity of one person who exercises control over the company.
Which below are deemed acceptable? (SELECT 3)

• A. Chief AML Officer.
• B. Chief Executive Officer.
• C. Chief Operating Officer.
• D. Managing Director.
• E. Chief Compliance Officer.

Answer: B,C,D

NEW QUESTION # 30
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