Latest CKYCA Study Guides 2025 - With Test Engine PDF
Get New CKYCA Practice Test Questions Answers
ACAMS CKYCA certification exam is designed to help professionals enhance their knowledge and skills in the area of AML and KYC compliance. Association of Certified Anti Money Laundering certification is ideal for professionals who are involved in AML and KYC compliance, including compliance officers, risk managers, auditors, and investigators. Association of Certified Anti Money Laundering certification is also beneficial for professionals who work in the financial services industry, including banks, credit unions, and money service businesses.
The CKYCA certification is particularly relevant today, given the increasing global focus on combating money laundering and financial crimes. Association of Certified Anti Money Laundering certification demonstrates an individual's commitment to their profession and their ability to effectively manage AML risks. It also provides a competitive advantage in a job market where employers are increasingly seeking professionals with specialized knowledge and skills.
NEW QUESTION # 76
From 2010 to 2018, a company had an average turnover of 1 million USD. In 2019, the turnover increased to 8 million USD. When asked for the reason of the increase, the company claims that business increased and refuses to give any further explanation despite several attempts at requesting information. Which is the best next step?
- A. Note to make a suspicious activity report if the increased turnover continues.
- B. Continue to ask for an explanation of the increased business.
- C. Make a note to check next year's turnover.
- D. File a suspicious activity report as soon as possible.
Answer: D
Explanation:
A sudden, unexplained, and significant increase in turnover, combined with the customer's refusal to provide supporting information, is a strong money laundering red flag and should trigger the immediate filing of a suspicious activity report.
NEW QUESTION # 77
An Ultimate Beneficial Owner (UBO) with a control prong is an individual with:
- A. indirect ownership greater than a certain percent value.
- B. direct and indirect ownership less than a certain percent value who exercises management and operational control.
- C. direct and indirect ownership greater than a certain percent value but who lacks management and operational control.
- D. direct ownership greater than a certain percent value.
Answer: B
Explanation:
Under the control prong, a UBO is identified as an individual who may not meet the ownership threshold but still exercises significant management or operational control over the entity, thereby having effective influence over its activities.
NEW QUESTION # 78
A legal entity applies to open an account in a financial institution. The owners of the entity are 20 individuals with equal shareholding. Who should be identified as the Ultimate Beneficial Owner (UBO), per Financial Action Task Force (FATF) guidelines?
- A. All 20 shareholders, because none exceeds the 25% threshold
- B. The person(s) exercising control and/or acting as a senior management official(s)
- C. No one; this is an orphan legal entity because it has no UBOs
- D. Any six shareholders whose collective shareholding exceeds 25%
Answer: B
Explanation:
FATF guidelines require identifying UBOs as individuals owning more than 25% or, if no one meets that threshold, those who exercise control through other means. In this case, no shareholder owns more than 25%, so the UBO is identified based on control, typically the person(s) in senior management.
NEW QUESTION # 79
A bank's business team has developed a new strategy, which includes the introduction of prepaid cards as a new high-risk product offering. The compliance team has proposed to impose a monetary limit on each prepaid card and limit the offering to the existing customers of the bank only. Which best describes the risk impact of the controls proposed by the compliance team?
- A. Residual risk will increase.
- B. Inherent risk will decrease.
- C. Residual risk will decrease.
- D. Inherent risk will increase
Answer: C
Explanation:
Inherent risk is the natural risk before controls are applied. The compliance team's measures (monetary limits and restricting to existing customers) reduce the exposure to misuse, thereby lowering the residual risk - the risk that remains after controls are implemented.
NEW QUESTION # 80
According to the Financial Action Task Force (FATF), which step should an institution take if a customer is unable to provide identifying documentation without errors?
- A. Continue opening the account and request additional information within 90 days.
- B. Request an information-sharing process and provide the error to other institutions.
- C. Cease opening the account and consider filling a suspicious activity report.
- D. Restrict similar customers from opening accounts and post a notice in the branches.
Answer: C
Explanation:
FATF requires that if a customer cannot provide acceptable identifying documentation, the institution must not open the account and should consider filing a suspicious activity report, as the inability to provide valid documents is a significant red flag.
NEW QUESTION # 81
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 # 82
What is legal risk? (SELECT 2)
- A. A warning from a regulator.
- B. An employee who commits a crime unrelated to the organization.
- C. An organization breaks laws when doing business.
- D. An employee who commits a crime unrelated to the organization.
Answer: C,D
NEW QUESTION # 83
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:
- A. special purpose vehicle.
- B. holding company.
- C. shell company.
- D. subsidiary company.
Answer: D
Explanation:
A holding company is established to own and control shares or assets of other companies, often for organizational, tax, or asset protection purposes, without engaging directly in the day-to-day operations of those businesses.
NEW QUESTION # 84
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. Report a suspicious transaction with respect to wiring money to a high-risk country.
- B. Review the account activity with respect to the transaction profile of the customer.
- C. End the business relationship due to wiring money to a high-risk country.
- D. Review the business activities and update where necessary.
Answer: B
Explanation:
During a periodic CDD review, the analyst should assess whether the account activity, including cash deposits and transfers to high-risk countries, aligns with the customer's stated transaction profile. This step determines if further escalation or reporting is necessary.
NEW QUESTION # 85
What a is supranational organization below? (SELECT 3)
- A. Australian Transaction Reports and Analysis Centre.
- B. World Trade Organization
- C. Singapore's Ministry of Law.
- D. United Nations
- E. European Union.
Answer: B,D,E
NEW QUESTION # 86
What is the Second Line of Defense? (SLOD)
- A. The ________ line of defense is internal audit. They perform an independent review of the controls applied by the lines of defense.
- B. The _______ line of defense is the compliance and internal control functions. That includes the chief money laundering reporting officer, or MLRO, in charge of managing and monitoring AML and CFT activities.
- C. The _______ line of defense is also known as the front line, these customer-facing employees are best-equipped to get the information you need for your customer due diligence. Can include Operations, risk, and control teams.
Answer: B
NEW QUESTION # 87
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 # 88
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. Obtain senior management approval for establishing such business relationships.
- B. Conduct enhanced ongoing monitoring of the business relationship each quarter.
- 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.
Answer: A
Explanation:
FATF requires that before establishing a business relationship with a PEP, financial institutions must obtain senior management approval, along with applying enhanced due diligence measures such as verifying the source of wealth and funds.
NEW QUESTION # 89
An existing customer publicly states she is planning to run for public office, but changes her mind. Which action should a KYC analyst take?
- A. Reach out to the customer to determine if she plans to run for public office in the future.
- B. Designate the customer as a high-risk customer due to the attention caused by her public statement.
- C. Discuss the matter with the Money Laundering Reporting Officer to determine if more information is required for the due diligence file
- D. Review the customer's compliance file to fill in any gaps needed to complete her new EDD status.
Answer: C
Explanation:
A public statement about running for office raises potential PEP considerations. Even if the customer changes her mind, the KYC analyst should discuss the matter with the Money Laundering Reporting Officer to assess whether further information is needed to update the due diligence file.
NEW QUESTION # 90
Which customer type represents the highest risk of money laundering to a financial institution?
- A. Construction company
- B. Payment service provider
- C. Accounting firm
- D. Wholesale food distributor
Answer: B
Explanation:
Payment service providers pose higher money laundering risk because they handle high volumes of transactions, often across multiple jurisdictions, and may process funds on behalf of third parties, increasing the potential for illicit activity.
NEW QUESTION # 91
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
Answer: B
NEW QUESTION # 92
......
CKYCA Dumps and Exam Test Engine: https://passguide.testkingpass.com/CKYCA-testking-dumps.html