Association of Certified Anti Money Laundering

Question 1

The following are some attributes of reliable sources to use in the EDD process. (SELECT 2)

A. Reputable and biased.

B. later publication date.

C. Industry-recognized.

D. Internal and external consistency.

Correct Answer: C,D

Question 2

During an EDD process for a business customer, which document is the best source to identify and obtain details on the source of funds?

A. Utility bill

B. Company's website

C. Financial statements

D. Articles of incorporation

Correct Answer: C

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Question 3

What is the Primary Money Laundering Regulation in the United Kingdom?

A. The Money Laundering and Terrorist Financing (Amendment) Regulation 2019

B. Proceeds of Crime Act

C. UK AML Sanctions Regime

D. Proceeds of Terrorism Act

Correct Answer: A

Question 4

A KYC analyst is performing EDD on a customer because of a deviation in expected transaction activity. Which factor should the analyst keep in mind if contacting the customer as part of this due diligence?

A. Communication with the customer should only be performed by the AML officer.

B. Discussions with the customer should focus on the nature of the due diligence request.

C. Communication with the customer should be performed on a secure phone line.

D. Discussions with the customer should refrain from tipping off the customer.

Correct Answer: D

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Question 5

As part of the source of wealth investigation of a high-net-worth individual, the compliance department at a private bank is tasked with obtaining documentary evidence pertaining to a family trust, through which the client's assets are controlled. KYC identification efforts should primarily include the:

A. trust deed including trustees, settlors, and beneficiaries.

B. client asset declaration, open source, and public databases.

C. details of nominees (if any) and trust intermediaries.

D. bank statements for investigation of transaction patterns.

Correct Answer: A

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Question 6

Data must be secure so that it cannot be hacked, stolen, or misused for other purposes?

A. Depends on the specifics.

B. True

C. False

Correct Answer: B

Question 7

Sanctions screening is important before onboarding a customer, or when using the services of a financial institution, because it:

A. always leads to a suspicious activity report.

B. helps identify customers that are politically exposed persons.

C. detects all possible sanctions risk exposure.

D. helps to identify a potential match to a sanctioned party or location.

Correct Answer: D

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Question 8

During a routine CDD update in a financial institution, a junior member of the compliance department identifies that the spouse of the reviewed client was elected as a member of government. Which action should the junior member take?

A. File a suspicious transaction report because the client did not notify the financial institution.

B. Make a note on the client's account of this fact and continue operations as usual.

C. Update the client's information to reflect that the client is related to a politically exposed person.

D. Inform the relationship manager about the election of the client's spouse

Correct Answer: C

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Question 9

Which risk assessment factor is most essential for a customer risk evaluation?

A. Customer country/jurisdiction of establishment

B. Customer size in terms of the number of employees

C. Number of years the company has been in operation
B Number of countries the company operates in

Correct Answer: A

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Question 10

Most Organizations Use the three risk classifications for customers.
What are they? (SELECT 3)

A. Medium.

B. Low.

C. Very High.

D. High.

E. Moderate.

F. EDD-High.

Correct Answer: A,B,D

ACAMS Association of Certified Anti Money Laundering - CKYCA Exam Practice Test

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