Updated Dec 14, 2025 Verified Pass CKYCA Exam in First Attempt Guaranteed
Free CKYCA Sample Questions and 100% Cover Real Exam Questions (Updated 132 Questions)
NEW QUESTION # 32
Control activities in financial crime prevention include? (SELECT 3)
- A. Detective Controls.
- B. Preventative Controls.
- C. Corrective controls.
- D. Incorrect Controls
- E. Premeditated Controls
Answer: A,B,C
NEW QUESTION # 33
What Boolean operator words can be used in for searching in EDD? (SELECT 2)
- A. PLUS.
- B. EQUAL.
- C. AND.
- D. OR.
Answer: C,D
NEW QUESTION # 34
Who is your customer?
- A. individuals, private companies, dodgy companies, others.
- B. individuals, listed companies, some private companies, others.
- C. individuals, listed companies, private companies, others.
- D. only individuals, listed companies, some private companies
Answer: C
NEW QUESTION # 35
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?
- A. Make a note in the KYC file to confirm if any unusual activity is identified.
- B. Escalate to the KYC manager for guidance.
- C. Cancel the applications in the system and instruct customers to read the entire list before selecting.
- D. Do not take further action because occupation verification is not required.
Answer: B
Explanation:
A sudden pattern in occupation selection can indicate inaccurate self-reporting or potential misuse of the onboarding process. Even if policy does not require occupation verification, such anomalies should be escalated to the KYC manager for review and potential policy or process adjustments.
NEW QUESTION # 36
The KYC four step research is?
- A. Assess, Organize, Explore, Past
- B. Assess, Operations, Explore, Present
- C. Assess, Organize, Explore, Present
- D. Assess, Organize, Narrow, Present
Answer: C
NEW QUESTION # 37
Assets under management show an increase of investors whose income originates from high-risk jurisdictions. This indicates higher risk in which area?
- A. Customer
- B. Geographical
- C. Economic
- D. Political
Answer: B
Explanation:
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 # 38
The following are some attributes of reliable sources to use in the EDD process. (SELECT 2)
- A. Internal and external consistency.
- B. Reputable and biased.
- C. Industry-recognized.
- D. later publication date.
Answer: A,C
NEW QUESTION # 39
Why can Trusts pose a higher risk from a financial crime perspective?
- A. They can be used to mask the true owner and actual business purpose.
- B. There is no major risk from a financial crime perspective? they are legitimate business instrument and that's why they are legal all around the world including in the United States, and Europe.
- C. The trustee can use a trust in order to commit financial crime.
- D. They are in a physical paper form and ownership is controlled by the person who possesses the physical paper in hand.
Answer: A
NEW QUESTION # 40
If a customer is a PEP and they are using private wealth services from banks, and also appear to have obtained a fair amount of wealth is this a red flag?
- A. Depends on the exact circumstances.
- B. No.
- C. Yes.
Answer: C
NEW QUESTION # 41
A physical person assessed as a medium-risk customer makes an extraordinary large cash deposit in his account at a financial institution. The customer is unable to provide an explanation for the large cash deposit. Which action should be taken next?
- A. Terminate the relationship with the customer
- B. Warn the customer not to repeat such transactions.
- C. Escalate the customer risk to high.
- D. File a suspicious transaction report as needed.
Answer: D
Explanation:
An unexplained large cash deposit is a potential money laundering red flag. The appropriate next step is to file a suspicious transaction report (STR) in accordance with regulatory requirements and the institution's AML procedures.
NEW QUESTION # 42
According to the Financial Action Task Force (FATF) Risk-Based Approach Guidance, institutions should
- A. incorporate customer risks into the business line risk profiles, but not into the institutional risk profile
- B. adjust customers' EDD processes independent from the institution's risk profile.
- C. adjust the extent and depth of EDD monitoring in line with their risk profile.
- D. incorporate only higher risk customers into its risk profile.
Answer: C
Explanation:
FATF's Risk-Based Approach Guidance advises that the scope and intensity of Enhanced Due Diligence (EDD) should be proportionate to the institution's overall risk profile, ensuring resources are directed where risks are greatest.
NEW QUESTION # 43
An onboarded entity's legal form differs from the incorporation documentation provided by the client and the information found in the country's business register. Which action should a KYC analyst take?
- A. File a suspicious activity report.
- B. Use the incorporation documentation provided by the client.
- C. Use the business register information.
- D. Reach out to the client to clarity the legal form.
Answer: D
Explanation:
When there is a discrepancy between client-provided documentation and official records, the KYC analyst should first contact the client to clarify and resolve the inconsistency before taking further action.
NEW QUESTION # 44
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?
- A. Mandatory periodic review should occur on at least an annual basis
- B. Simplified monitoring is required per the customer risk criteria.
- C. Simplified monitoring should occur on a yearly basis.
- D. Enhanced monitoring may be decided on by the business line manager.
Answer: A
NEW QUESTION # 45
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. details of nominees (if any) and trust intermediaries.
- B. client asset declaration, open source, and public databases.
- C. bank statements for investigation of transaction patterns.
- D. trust deed including trustees, settlors, and beneficiaries.
Answer: D
Explanation:
The trust deed is the primary legal document that establishes the trust and identifies the trustees, settlors, and beneficiaries, making it essential for verifying the structure, control, and legitimacy of the client's assets.
NEW QUESTION # 46
In which circumstance must a KYC analyst obtain source of wealth information on a client subject to CDD?
- A. Information on source of wealth for CDD clients must always be collected.
- B. The client's senior manager is deemed to be an ultimate beneficial owner.
- C. The number of business relationships involving high-risk third countries or politically exposed persons increases.
- D. The client is establishing a business relationship with a private company whose benefit surpasses 10 million USD.
Answer: C
Explanation:
FATF requires obtaining and verifying source of wealth information in higher-risk situations, such as when there is increased involvement with high-risk jurisdictions or Politically Exposed Persons (PEPs), as part of enhanced due diligence.
NEW QUESTION # 47
What industries are often exploited by criminals (SELECT 3)
- A. Insurance.
- B. Casinos.
- C. Broker Dealers.
- D. Charities Non Profits.
- E. Dealers in high value goods.
Answer: B,D,E
NEW QUESTION # 48
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.
Answer: B
NEW QUESTION # 49
What is the overall purpose of KYC?
- A. To manage the risk posed by Terrorist Financing
- B. To manage the risk posed by Money Laundering.
- C. To manage the risk posed by customers.
- D. To manage the risk posed by financial services industry.
Answer: C
NEW QUESTION # 50
The European Union developed its 5th Money Laundering Directive based in part on the following? (SELECT 3)
- A. A significant change in terrorist attacks in Europe over the previous five years.
- B. The Panama Papers leaks, which identified the extent to which offshore accounts are used to disguise beneficial ownership.
- C. The adoption of cryptocurrencies and other digital channels for money laundering, which are currently unregulated sectors.
- D. The exit of Britain from the European Regulatory System.
- E. Money Laundering and Financial Crime were deemed by the European Parliament and local committees as to be out of control in countries such as Andorra, Lichtenstein, and Tunisia.
Answer: A,B,C
NEW QUESTION # 51
Which describes the best method for creating a thorough audit trail to prove compliance?
- A. Documenting pictures of the customer holding the identification stored in the customer profile
- B. Incorporating copies of documentation and written communication in the customer profile
- C. Storing transcripts in the customer's profile of dialogues that take place during onboarding
- D. Notations within the customer profile that the identity was checked
Answer: B
Explanation:
A thorough audit trail requires keeping complete, verifiable records, including copies of identification documents and all written communications, so that compliance checks can be evidenced to regulators or auditors.
NEW QUESTION # 52
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The CKYCA certification exam covers a wide range of topics related to AML and CDD, including regulatory requirements, risk assessment, customer identification and verification, and transaction monitoring. CKYCA exam is designed to test the knowledge and skills of individuals who are responsible for implementing and maintaining AML and CDD programs within their organizations. Association of Certified Anti Money Laundering certification is particularly relevant for professionals who work in financial institutions, law enforcement agencies, and regulatory bodies.
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