CKYCA Certified Know Your Customer Associate Free Demo Questions – Try Before You Buy

Question 1

An Iranian customer is incorrectly recorded in the system as being from Ireland. As a result of this error, the customer will be:

A

assigned fewer risk points.

B

prohibited from funding a new account.

C

disallowed from opening new accounts.

D

not screened against applicable sanctions lists.

Correct Answer: A

Explanation:

Misrecording the customer’s country as a low-risk jurisdiction like Ireland instead of a high-risk sanctioned jurisdiction like Iran would result in the system assigning fewer risk points, underestimating the customer’s true risk level.

Question 2

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?

A

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

B

Refer internally for a potential suspicious transaction report

C

Establish internally the existence of a criminal violation.

D

Prepare to close the customer’s account.

Correct Answer: B

Explanation:

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).

Question 3

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

A

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

B

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

C

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

D

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

Correct Answer: D

Explanation:

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.

Demo Acams CKYCA Exam Questions

An Iranian customer is incorrectly recorded in the system as being from Ireland. As a result of this error, the customer will be:

assigned fewer risk points.

prohibited from funding a new account.

disallowed from opening new accounts.

not screened against applicable sanctions lists.

Correct Answer: A

Misrecording the customer’s country as a low-risk jurisdiction like Ireland instead of a high-risk sanctioned jurisdiction like Iran would result in the system assigning fewer risk points, underestimating the customer’s true risk level.

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.

Correct Answer: B

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).

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

Correct Answer: D

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.

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