[Apr-2023] CKYCA Pre-Exam Practice Tests Exam Questions and Answers for ACAMS Certification Study Guide [Q30-Q47]

QUESTION 30
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.

QUESTION 31
For secondary forms of non-documentary verification. Is the act of someone from the institution ringing up the individual and confirming the verification sufficient?

Yes.

No.

Depends on the client.

QUESTION 32
Why can Trusts pose a higher risk from a financial crime perspective?

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.

The trustee can use a trust in order to commit financial crime.

They are in a physical paper form and ownership is controlled by the person who possesses the physical paper in hand.

They can be used to mask the true owner and actual business purpose.

QUESTION 33
What is the overall purpose of KYC?

To manage the risk posed by Money Laundering.

To manage the risk posed by financial services industry.

To manage the risk posed by customers.

To manage the risk posed by Terrorist Financing

QUESTION 34
A hospitality worker brings deposits items that appear to be made from a cash intensive business. Is this a red flag?

Yes, anyone who brings that type of currency is likely involved to have received it from illegal means.

No, the customer profile for the hospitality worker fits their occupation.

It depends on the location, business, and feeling of the employee accepting the deposit.

QUESTION 35
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)

Online Registry.

Articles of Incorporation.

Audited Statements.

Utility Bill.

QUESTION 36
A shell company or corporation is a company that, at the time of incorporation, has no significant? (SELECT 2)

Assets.

Employees.

Funds.

Operations.

QUESTION 37
What Boolean operator words can be used in for searching in EDD? (SELECT 2)

AND.

PLUS.

EQUAL.

OR.

QUESTION 38
Most Organizations Use the three risk classifications for customers.
What are they? (SELECT 3)

High.

Moderate.

Low.

Medium.

Very High.

EDD-High.

QUESTION 39
What is the Third Line of Defense? (TLOD)

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 internal audit. They perform an independent review of the controls applied by the lines of defense.

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.

QUESTION 40
What risk increases with non-face-to-face business relationships or transactions, or when payments are sent to or received from unknown or unassociated third parties.

Financial Crime Risk.

Operational Risk.

Channel Risk

Remittance Risk

QUESTION 41
When is comes to Enhanced Due Diligence (EDD) regulators require you to do a perfect job on the client.

TRUE.

FALSE.

QUESTION 42
What is an example of secondary identification in a customers CIP program? (SELECT 3)

Identification from a utility company.

Identification from a registry of secretary of state.

Identification from a college.

Identification from securities and exchange commission. (SEC)

Identification from another financial institution.

QUESTION 43
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

QUESTION 44
The four step model is a model designed to?

Improve the quality of your KYC Program.

Improve the quality of your KYC Research.

Improve the quality of your KYC Files.

Improve the quality of the KYC Rule.

QUESTION 45
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

QUESTION 46
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?

Dripping off

Ripping off

Tipping off

Dipping off

QUESTION 47
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.