[Q20-Q42] PASS CKYCA exam with ACAMS Real Exam Questions – 100% Valid!

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PASS CKYCA exam with ACAMS Real Exam Questions – 100% Valid!

Actual CKYCA Exam Recently Updated Questions with Free Demo

ACAMS CKYCA certification exam is a well-regarded credential that is recognized throughout the world as a standard for AML and KYC professionals. CKYCA exam is designed to assess the knowledge and skills of professionals who are involved in AML and KYC compliance, and it is open to professionals who have experience in the field. Association of Certified Anti Money Laundering certification is ideal for professionals who are involved in AML and KYC compliance, and it is beneficial for professionals who work in the financial services industry.

ACAMS CKYCA exam covers a wide range of topics related to anti-money laundering, including financial crime trends, compliance practices, risk management, and legal and regulatory frameworks. CKYCA exam is designed to test the candidate’s knowledge and understanding of these critical areas. CKYCA exam is divided into several sections, each of which covers a specific topic related to anti-money laundering.

NEW QUESTION 20
Assets under management show an increase of investors whose income originates from high-risk jurisdictions. This indicates higher risk in which area?

Customer

Geographical

Political

Economic

FATF considers jurisdictions with weak AML/CFT controls as high-risk. An increase in investors from such regions raises geographical risk, since the customers’ funds originate from locations with elevated money laundering or terrorism financing threats.

NEW QUESTION 21
In automated screening, a “false positive” match is a match which:

after review is found to be incorrect.

during review is incorrectly dismissed as being a hit.

is generated by the screening tool and confirmed to be a hit.

was not flagged by the screening tool.

In automated screening, a “false positive” occurs when the system flags a potential match to a sanctions list, PEP list, or adverse media, but upon manual review it is determined that the match is incorrect.

NEW QUESTION 22
During the onboarding process of a new customer, it is noted that the customer is a politically exposed person opening a private banking account and has a foreign passport. Which statement best describes the industry best practice for the institution?

Mandatory periodic review should occur on at least an annual basis

Simplified monitoring should occur on a yearly basis.

Enhanced monitoring may be decided on by the business line manager.

Simplified monitoring is required per the customer risk criteria.

NEW QUESTION 23
For benefitial ownership, the exact account-opening procedures and customer acceptance policies will depend on the type of? (SELECT 3)

Risk.

Customer.

Geography.

Product.

Local Regulations.

NEW QUESTION 24
A foreign customer claims as source of wealth the sale of inherited real estate. Which would be an appropriate next step in the verification process?

Obtain a bank reference letter

Visit the inherited real estate to verity the existence.

No further evidence is required for inheritance.

Obtain the sale contract.

Obtaining the sale contract provides documented evidence of the transaction, allowing verification of both the existence of the inherited property and the legitimacy of the proceeds as the customer’s source of wealth.

NEW QUESTION 25
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)

True.

False

NEW QUESTION 26
The following are some attributes of reliable sources to use in the EDD process. (SELECT 2)

Reputable and biased.

Internal and external consistency.

Industry-recognized.

later publication date.

NEW QUESTION 27
What are the two types of Politically Exposed Persons (PEPS) that are identified by The Financial Action Task Force? (SELECT 2)

Domestic PEPs are individuals who are or have been entrusted domestically with prominent public functions.

Domestic PEPs are individuals who are or have been entrusted domestically with prominent non-public functions.

Foreign PEPs are individuals who are or have been entrusted with prominent public functions by a foreign country.

Foreign PEPs are individuals who are or have been entrusted with prominent public functions by a domestic country.

NEW QUESTION 28
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:

subsidiary company.

special purpose vehicle.

shell company.

holding company.

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 29
Which is the best technique to effectively document a customer profile?

Have the profile start with a picture of the customer followed by key numbers, such as expected turnover.

Record customer information using abbreviations, explain adjectives, and provide a narrative to follow.

Document customer information in a standardized way that is defined by the customer’s jurisdiction

Avoid adjectives and exaggerations, put the information into context, and be precise and unambiguous

Effective customer profile documentation should be clear, precise, and free from subjective language. Providing context and avoiding ambiguity ensures the information is reliable, verifiable, and usable for risk assessment and compliance purposes.

NEW QUESTION 30
Which risk assessment factor is most essential for a customer risk evaluation?

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

Customer country/jurisdiction of establishment

Customer size in terms of the number of employees

The customer’s country or jurisdiction of establishment is a key risk assessment factor because it determines the applicable legal framework, AML/CFT risk level, and potential exposure to high-risk or sanctioned regions.

NEW QUESTION 31
When is Enhanced Due Diligence (EDD) used?

Financial Institutions use EDD only when the geographical trigger event.

Financial Institutions use EDD only when the product trigger event.

If lower risk of easy to assess.

if higher risk or difficult to assess.

NEW QUESTION 32
What is the Second Line of Defense? (SLOD)

The ________ line of defense is internal audit. They perform an independent review of the controls applied by the lines of defense.

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.

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.

NEW QUESTION 33
What prohibits US companies and individuals from paying bribes to foreign officials in furtherance of a business deal. It has extraterritorial reach?

International Anti-Bribery Act of 1998

The Foreign Corrupt Practices Act of 1977

Bribery Act 2010

Corruption of Foreign Public Officials Act

NEW QUESTION 34
What is legal risk? (SELECT 2)

An organization breaks laws when doing business.

An employee who commits a crime unrelated to the organization.

A warning from a regulator.

An employee who commits a crime unrelated to the organization.

NEW QUESTION 35
An individual customer with a regular job and a salary opening a savings account would be?

Low Risk.

Medium Risk.

High Risk.

Unable to determine with that information.

NEW QUESTION 36
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?

Restrict similar customers from opening accounts and post a notice in the branches.

Continue opening the account and request additional information within 90 days.

Cease opening the account and consider filling a suspicious activity report.

Request an information-sharing process and provide the error to other institutions.

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 37
The overall control environment is the set of _________

standards, processes, and structures that provide the basis for carrying out external control across the organization.

risk standards, processes, and structures that provide the basis for carrying out internal control across the organization.

standards, processes, and structures that provide the basis for carrying out internal control across the organization.

NEW QUESTION 38
What is the Third Line of Defense? (TLOD)

The ________ line of defense is internal audit. They perform an independent review of the controls applied by the lines of defense.

NEW QUESTION 39
The KYC four step research is?

Assess, Organize, Explore, Past

Assess, Organize, Narrow, Present

Assess, Operations, Explore, Present

Assess, Organize, Explore, Present

NEW QUESTION 40
What a is supranational organization below? (SELECT 3)

World Trade Organization

Australian Transaction Reports and Analysis Centre.

Singapore’s Ministry of Law.

United Nations

European Union.

NEW QUESTION 41
A KYC analyst notices frequent use of letters of credit as a method of trade finance. It further appears that trades covered by letters of credit are not consistent with the customer’s usual business. What should be the next action taken by the KYC analyst?

Notify the Board of Directors and obtain the Board’s approval for filing a STR.

Refer internally for a potential suspicious transaction report

Establish internally the existence of a criminal violation.

Prepare to close the customer’s account.

Unusual trade finance activity, such as letters of credit inconsistent with the customer’s normal business, is a potential red flag for trade-based money laundering. The appropriate step is to make an internal referral for review and possible filing of a suspicious transaction report (STR).

NEW QUESTION 42
Who will review KYC files to determine whether you are complying with your jurisdiction’s laws and regulations

Regulators

Law Enforcement

Compliance

The KYC Analyst

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