[2025] CKYCA All-in-One Exam Guide Practice To your CKYCA Exam!
Preparations of CKYCA Exam 2025 AML Certifications Unlimited 132 Questions
ACAMS CKYCA (Association of Certified Anti Money Laundering) Certification Exam is a globally recognized certification that is designed to validate the knowledge and expertise of anti-money laundering professionals. Association of Certified Anti Money Laundering certification is offered by the Association of Certified Anti-Money Laundering Specialists (ACAMS), which is a leading organization that provides training and certification programs for professionals working in financial crime prevention.
NEW QUESTION # 78
Which situation would most likely increase the inherent risk of a corporate customer?
- A. A beneficial owner of the customer goes public on a US stock exchange.
- B. A junior-level employee of the customer becomes politically exposed.
- C. The customer opens an additional cash management account.
- D. The customer's business expands beyond its home country.
Answer: D
Explanation:
Expanding business operations beyond the home country increases inherent risk due to cross-border transactions, exposure to multiple jurisdictions, and potential dealings with regions of higher money laundering or terrorism financing risk.
NEW QUESTION # 79
Usually, the risk associated with the customer can be higher if the customer is nonresident?
- A. Yes
- B. Depends
- C. No
Answer: A
NEW QUESTION # 80
What is the Primary legislation for Money Laundering in the United States?
- A. Anti-Drug Abuse Act of 1988
- B. Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act)
- C. Money Laundering Control Act of 1986
- D. Bank Secrecy Act (1970)
- E. Money Laundering and Financial Crimes Strategy Act (1998)
Answer: D
NEW QUESTION # 81
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. not screened against applicable sanctions lists.
- D. disallowed from opening new accounts.
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.
NEW QUESTION # 82
What is the Third Line of Defense? (TLOD)
- A. 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.
- 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 internal audit. They perform an independent review of the controls applied by the lines of defense.
Answer: C
NEW QUESTION # 83
The owner of a local flower shop makes cash deposits on a regular basis to the shop's business account. Following the deposits, the owner wires the money to a high-risk country. Which action should a KYC analyst perform when conducting the periodic CDD review?
- A. Review the business activities and update where necessary.
- B. Report a suspicious transaction with respect to wiring money to a high-risk country.
- C. End the business relationship due to wiring money to a high-risk country.
- D. Review the account activity with respect to the transaction profile of the customer.
Answer: D
Explanation:
During a periodic CDD review, the analyst should assess whether the account activity, including cash deposits and transfers to high-risk countries, aligns with the customer's stated transaction profile. This step determines if further escalation or reporting is necessary.
NEW QUESTION # 84
The ownership of a legal person is often described as having two prongs. The first one is the beneficial owner, this is the natural or legal person who owns the entity and who benefits from its activities. The second one is called?
- A. Control Party Prong.
- B. Controlling Prong.
- C. KYC Prong.
- D. Control Prong.
Answer: D
NEW QUESTION # 85
What is a regional risk (SELECT 3)
- A. Port Cities.
- B. High Intensity Financial Crime Areas (HIFCA)
- C. Global Financial Centers
- D. Lax Immigration Controls.
- E. Free Trade Zones.
Answer: A,B,E
NEW QUESTION # 86
The following are some attributes of reliable sources to use in the EDD process. (SELECT 2)
- A. later publication date.
- B. Internal and external consistency.
- C. Industry-recognized.
- D. Reputable and biased.
Answer: B,C
NEW QUESTION # 87
Which is a preferred source of non-documentary verification?
- A. Driver's license
- B. Employer records
- C. University student identification
- D. Credit report
Answer: D
Explanation:
A credit report is a reliable non-documentary verification source because it is generated by an independent, trusted agency and contains validated personal and financial information that can help confirm a customer's identity.
NEW QUESTION # 88
A compliance officer is tasked with building a financial institution's annual risk assessment. Which data attributes should be used to understand inherent risk?
- A. Size of the financial institution and if it is publicly listed on an exchange
- B. Customer types and products offered to customers
- C. Number and types of audit examinations in a year performed by the regulator C Number of control-side function employees and business employees
Answer: B
Explanation:
Inherent risk is the level of risk present before controls are applied and is influenced by factors such as the types of customers served and the products or services offered, both of which directly affect the institution's exposure to financial crime risks.
NEW QUESTION # 89
What are the two types of Politically Exposed Persons (PEPS) that are identified by The Financial Action Task Force? (SELECT 2)
- A. Foreign PEPs are individuals who are or have been entrusted with prominent public functions by a domestic country.
- B. Foreign PEPs are individuals who are or have been entrusted with prominent public functions by a foreign country.
- C. Domestic PEPs are individuals who are or have been entrusted domestically with prominent non-public functions.
- D. Domestic PEPs are individuals who are or have been entrusted domestically with prominent public functions.
Answer: B,D
NEW QUESTION # 90
Which action should be considered a possible red flag, indicating to a bank that the activity might warrant further investigation?
- A. Making multiple cash deposits just under the reporting threshold
- B. Sending large amounts of money to family in their home country with known sources of income
- C. Opening a new account without a local telephone number or utility bill
- D. Adding a new beneficial owner after the establishment of the business relationship
Answer: A
Explanation:
Structuring transactions by making multiple cash deposits just under the reporting threshold is a common method to evade detection and reporting requirements, making it a strong red flag for potential money laundering.
NEW QUESTION # 91
A longstanding client asks to open two additional accounts, one for a trust and one for private equity investments.
The trust account will be funded with dividends stemming from the investments as well as a one-off transfer from one of the client's existing accounts. As a first step, a KYC analyst should properly document the:
- A. transactions between the two new accounts.
- B. initial transfer from the client's existing account
- C. beneficiary/beneficiaries of the trust
- D. dividends from the private equity investments.
Answer: C
Explanation:
When opening an account for a trust, the first step in KYC is to identify and document the trust's beneficiaries, along with other key parties such as the settlor and trustees, to establish transparency over the ultimate beneficial ownership.
NEW QUESTION # 92
The KYC four step research is?
- A. Assess, Organize, Explore, Past
- B. Assess, Organize, Narrow, Present
- C. Assess, Organize, Explore, Present
- D. Assess, Operations, Explore, Present
Answer: C
NEW QUESTION # 93
An individual customer with a regular job and a salary opening a savings account would be?
- A. Low Risk.
- B. Medium Risk.
- C. High Risk.
- D. Unable to determine with that information.
Answer: A
NEW QUESTION # 94
What risks are you looking for when a client has requires Enhanced Due Diligence (EDD) (Select 3)
- A. Transaction Risks.
- B. Litigation Risks.
- C. Political Risks.
- D. Bank Risks.
- E. Integrity.
Answer: B,C,E
NEW QUESTION # 95
Which is the most relevant risk factor for an individual client?
- A. Country of employment
- B. Country of residence
- C. Country of birth
- D. Country of citizenship
Answer: B
Explanation:
The country of residence is the most relevant risk factor because it determines the jurisdiction where the client primarily lives and conducts financial activities, directly impacting exposure to geographical money laundering or terrorism financing risks.
NEW QUESTION # 96
What is the advantage of Bearer Shares? (SELECT 3)
- A. They are a more affordable way of setting up a business in certain countries in the Caribbean.
- B. They can't be traced to a central registry because whoever carries them is the purported owner.
- C. Tax haven countries and their strict secrecy laws can further conceal the true ownership.
- D. They can be held under agreement by professionals as another layer of secrecy.
- E. They are an excellent, quick effective way to set up a business in Delaware, Nevada, and Wyoming
Answer: B,C,D
NEW QUESTION # 97
Trade finance, which is the provision or credit for domestic and international trade transactions is likely?
- A. Usually a Low Risk Product.
- B. It depends on the Anti-Money Laundering program.
- C. Usually a Medium Risk Produce.
- D. Usually a High Risk Product
Answer: D
NEW QUESTION # 98
A hospitality worker brings deposits items that appear to be made from a cash intensive business. Is this a red flag?
- A. It depends on the location, business, and feeling of the employee accepting the deposit.
- B. No, the customer profile for the hospitality worker fits their occupation.
- C. Yes, anyone who brings that type of currency is likely involved to have received it from illegal means.
Answer: B
NEW QUESTION # 99
In regards to ongoing CDD, financial institutions should ensure:
- A. they apply a risk-based approach on the frequency of customer profile reviews.
- B. a yearly review of information they maintain on all customers for consistency and efficiency.
- C. a thorough CDD process during customer onboarding so that periodic reviews are unnecessary.
- D. the customer profile is reviewed prior to every transaction in order to make sure the information is unchanged or current.
Answer: A
Explanation:
Ongoing CDD should follow a risk-based approach, meaning higher-risk customers are reviewed more frequently, while lower-risk customers are reviewed at longer intervals, optimizing resources and maintaining compliance.
NEW QUESTION # 100
Financial Institutions include? (SELECT 2)
- A. Insurance Companies.
- B. Broker Dealer.
- C. Pay Day Loan Companies.
- D. Companies registered with the SEC.
Answer: A,B
NEW QUESTION # 101
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ACAMS CKYCA (Association of Certified Anti Money Laundering) Exam is a certification program designed for professionals in the anti-money laundering (AML) and financial crime prevention field. Association of Certified Anti Money Laundering certification is designed to provide professionals with the necessary skills and knowledge to effectively combat money laundering and other financial crimes. Association of Certified Anti Money Laundering certification program is recognized globally and is a testament to an individual's commitment to the AML and financial crime prevention profession.
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