ACAMS Association of Certified Anti Money Laundering

QUESTION NO: 1
During the regular periodic review of a high-risk client, a KYC analyst performs EDD checks and detects the presence of a politically exposed person. The KYC analyst should escalate this issue to the:

A. onboarding team for the assessment of risk B. privacy officer for the assessment of risk C. head of the KYC team for approval or denial of risk. D. management team for approval or denial of risk

Correct Answer: D

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QUESTION NO: 2
If you need to reach out to the client for more information and/or verification regarding the Enhanced Due Diligence (EDD) Process. should the KYC employee reach out directly to the client themselves and not the a relationship manager or equivalent.

A. TRUE. B. FALSE.

Correct Answer: B

QUESTION NO: 3
In automated screening, a "false positive" match is a match which:

A. after review is found to be incorrect. B. during review is incorrectly dismissed as being a hit. C. was not flagged by the screening tool. D. is generated by the screening tool and confirmed to be a hit.

Correct Answer: A

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QUESTION NO: 4
A politically exposed person (PEP) is eager to open a private account with an international bank. In addition to performing the normal CDD, which measure should be required from the AML officer?

A. Conduct enhanced ongoing monitoring of the business relationship each quarter. B. Obtain senior management approval for establishing such business relationships. C. Make a note of a PEP business relationship and file a suspicious transaction report to the local financial intelligence unit. D. Contact law enforcement, as PEPs pose enhanced risks to an institution.

Correct Answer: B

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QUESTION NO: 5
Secondary identification is often used to cross-verify the primary form of identification and to cross-verify information provided by the customer.
What is an example of secondary identification? (SELECT 2)

A. Utility Bill. B. Articles of Incorporation. C. Online Registry. D. Audited Statements.

Correct Answer: A,D

QUESTION NO: 6
A KYC analyst suspects a transaction is related to a sanctioned individual. How should the analyst respond?

A. Continue with the due diligence onboarding procedure, focusing on primary and secondary documentation. B. Reach out to the customer to confirm their sanctions status during the onboarding process, and after that, once a year. C. Discuss the issue with the firm's compliance officer as it is of low priority. D. Report the issue immediately according to the defined procedures.

Correct Answer: D

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QUESTION NO: 7
The owner of a local flower shop makes cash deposits on a regular basis to the shop's business account. Following the deposits, the owner wires the money to a high-risk country. Which action should a KYC analyst perform when conducting the periodic CDD review?

A. Review the account activity with respect to the transaction profile of the customer. B. Report a suspicious transaction with respect to wiring money to a high-risk country. C. End the business relationship due to wiring money to a high-risk country. D. Review the business activities and update where necessary.

Correct Answer: A

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QUESTION NO: 8
What prohibits US companies and individuals from paying bribes to foreign officials in furtherance of a business deal. It has extraterritorial reach?

A. International Anti-Bribery Act of 1998 B. Corruption of Foreign Public Officials Act C. Bribery Act 2010 D. The Foreign Corrupt Practices Act of 1977

Correct Answer: D

ACAMS Association of Certified Anti Money Laundering - CKYCA Exam Questions