Updated Jan 17, 2023 Certification Exam CKYCA Dumps - Practice Test Questions
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NEW QUESTION 27
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 28
When is Enhanced Due Diligence (EDD) used?
- A. If lower risk of easy to assess.
- B. Financial Institutions use EDD only when the product trigger event.
- C. if higher risk or difficult to assess.
- D. Financial Institutions use EDD only when the geographical trigger event.
Answer: C
NEW QUESTION 29
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 adoption of cryptocurrencies and other digital channels for money laundering, which are currently unregulated sectors.
- C. The Panama Papers leaks, which identified the extent to which offshore accounts are used to disguise beneficial ownership.
- D. 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.
- E. The exit of Britain from the European Regulatory System.
Answer: A,B,C
NEW QUESTION 30
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. Online Registry.
- B. Audited Statements.
- C. Articles of Incorporation.
- D. Utility Bill.
Answer: B,D
NEW QUESTION 31
A person disclosing to any other person, information or any other matter, which is likely to prejudice a money laundering investigation is known to be?
- A. Tipping off
- B. Dipping off
- C. Dripping off
- D. Ripping off
Answer: A
NEW QUESTION 32
What is an example of secondary identification in a customers CIP program? (SELECT 3)
- A. Identification from securities and exchange commission. (SEC)
- B. Identification from a registry of secretary of state.
- C. Identification from a utility company.
- D. Identification from a college.
- E. Identification from another financial institution.
Answer: C,D,E
NEW QUESTION 33
For benefitial ownership, the exact account-opening procedures and customer acceptance policies will depend on the type of? (SELECT 3)
- A. Geography.
- B. Product.
- C. Local Regulations.
- D. Customer.
- E. Risk.
Answer: C,D,E
NEW QUESTION 34
For AML purposes, most jurisdictions require that beneficial ownership be collected at a threshold of (SELECT 2)
- A. 20%
- B. 15%
- C. 10% sometimes for high risk customers
- D. 25%
Answer: C,D
NEW QUESTION 35
Why can Trusts pose a higher risk from a financial crime perspective?
- A. They are in a physical paper form and ownership is controlled by the person who possesses the physical paper in hand.
- 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. They can be used to mask the true owner and actual business purpose.
- D. The trustee can use a trust in order to commit financial crime.
Answer: C
NEW QUESTION 36
The five components of the internal control framework are the overall control environment are risk assessment, control activities, communication, regulations, quality assurance?
- A. No.
- B. Yes.
Answer: A
NEW QUESTION 37
What of the following countries are considered Tax Havens? (SELECT 2)
- A. British Virgin Islands.
- B. Barbados.
- C. Cayman Islands.
- D. United States Virgin Islands.
Answer: A,C
NEW QUESTION 38
Control activities in financial crime prevention include? (SELECT 3)
- A. Corrective controls.
- B. Premeditated Controls
- C. Preventative Controls.
- D. Incorrect Controls
- E. Detective Controls.
Answer: A
NEW QUESTION 39
What corporate vehicles can a money launderer hide behind, where it is difficult to identify the beneficial owner? (SELECT 4)
- A. Private investment companies.
- B. Trusts.
- C. Sole Proprietors.
- D. Shell companies.
- E. Regulated investment advisors
Answer: A,B,C,D
NEW QUESTION 40
What stage is the explore step in the 4 step process with regards to the 4-step research model?
- A. 4th.
- B. 3rd.
- C. 1st.
- D. 2nd.
Answer: D
NEW QUESTION 41
Which documents rates countries based on their money laundering controls and corruption? (SELECT 2)
- A. US State Department's annual International Narcotics Control Strategy Report
- B. United Nations report on Money Laundering Controls
- C. Financial Action Task Forces red flags related to jurisdiction risk
- D. Transparency International's Corruption Perceptions Index
- E. Transparency International's Corruption Perceptions Index
Answer: A,E
NEW QUESTION 42
The four step model is a model designed to?
- A. Improve the quality of your KYC Research.
- B. Improve the quality of the KYC Rule.
- C. Improve the quality of your KYC Program.
- D. Improve the quality of your KYC Files.
Answer: A
NEW QUESTION 43
Jurisdictions with high risk usually have (SELECT 4)
- A. Poverty
- B. Poor anti-money laundering regulations.
- C. Inadequate regulatory and judicial frameworks to prevent terror financing
- D. Host shell and shelf companies.
- E. High levels of corruption
Answer: B,C,D,E
NEW QUESTION 44
The first step in the CDD of a legal person is to?
- A. Find out what the account will be used for, and the level of activity your organization should expect to see.
- B. Discover the type of business your customer undertakes.
- C. Understand the ownership structure and to track back to the ultimate beneficial owners and controllers.
Answer: C
NEW QUESTION 45
What is the Primary Money Laundering Regulation in the United Kingdom?
- A. The Money Laundering and Terrorist Financing (Amendment) Regulation 2019
- B. Proceeds of Terrorism Act
- C. UK AML Sanctions Regime
- D. Proceeds of Crime Act
Answer: A
NEW QUESTION 46
Shell companies can only be established as single purpose entities?
- A. No.
- B. Yes.
Answer: A
NEW QUESTION 47
Is collecting identification a legal requirement in jurisdictions?
- A. Most.
- B. No.
- C. Yes.
Answer: A
NEW QUESTION 48
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