CKYCA

CKYCA practice questions, page 2 of 3, with answer review and explanations.

Question 6

Which factor would be a reason for concern when corroborating the source of wealth of an individual client?

  1. The client amends their narrative as they are unable to provide supplementary information.
  2. The client is unable to provide bank statements relating to a redundancy pay-out 15 years ago.
  3. The client has no online presence, despite significant wealth.
  4. The client’s online career profile does not mention their significant property investments.

Question 7

In automated screening, a “false positive” match is a match which:

  1. after review is found to be incorrect.
  2. during review is incorrectly dismissed as being a hit.
  3. is generated by the screening tool and confirmed to be a hit.
  4. was not flagged by the screening tool.

Question 8

An owner of several trading companies worldwide is advised to register a new company for the legitimate purpose of controlling foreign assets of their trading companies. This new company is commonly referred to as a:

  1. subsidiary company.
  2. special purpose vehicle.
  3. shell company.
  4. holding company.

Question 9

In which circumstance must a KYC analyst obtain source of wealth information on a client subject to CDD?

  1. Information on source of wealth for CDD clients must always be collected.
  2. The client is establishing a business relationship with a private company whose benefit surpasses 10 million USD.
  3. The client’s senior manager is deemed to be an ultimate beneficial owner.
  4. The number of business relationships involving high-risk third countries or politically exposed persons increases.

Question 10

Customers opening accounts online identify their occupation from a drop-down list. A KYC analyst notices a high volume of applicants selecting “Accountant” because itis at the top of the list. The institution’s KYC policy does not require evidence to verify occupation. Which is the most appropriate action for the KYC analyst to take?

  1. Do not take further action because occupation verification is not required.
  2. Make a note in the KYC file to confirm if any unusual activity is identified.
  3. Cancel the applications in the system and instruct customers to read the entire list before selecting.
  4. Escalate to the KYC manager for guidance.