1.
In a KYC context, what does “control through other means” refer to in UBO identification?
2.
A high-net-worth individual (HNI) opens a private banking account. Due diligence reveals they are not listed as a PEP, but several adverse media sources link their family foundation to laundering money via luxury art auctions. No conviction exists, and the individual has no direct involvement in those reports. What should the compliance officer do?
3.
A mid-sized company is onboarding with layered ownership and one shareholder is a Panama-based shell entity. No UBO is visible. What should the compliance officer do?
4.
A politically exposed person (PEP) is found to be indirectly related to the client through marriage. What should the compliance team do?
5.
What is the best course of action if a legal entity has nominee shareholders and no natural person can be identified as UBO?
6.
A politically exposed person (PEP) from a high-risk country opens a new account and deposits a large amount of cryptocurrency converted to fiat. He claims it’s a donation to a global nonprofit. As a KYC analyst, what should be your first action?
7.
Which of the following best indicates a shell company?
8.
Which of the following scenarios most likely requires Enhanced Due Diligence (EDD) under FATF guidelines?
9.
What is the best action if an entity’s ownership is layered through 3 offshore companies?
10.
In KYC for a corporate customer, Ultimate Beneficial Ownership (UBO) must be established when ownership is:
11.
A client insists on using only cash for transactions. What risk does this pose?
12.
Which of the following best describes the role of Customer Risk Rating (CRR) in a Risk-Based Approach (RBA) to KYC?
13.
What is the primary goal of Enhanced Due Diligence (EDD)?
14.
What does Adverse Media Screening help detect?
15.
PEP screening is important because:
16.
What is the most appropriate type of due diligence for a politically exposed person (PEP)?
17.
Which risk mitigation action is most appropriate when onboarding a foreign charity operating in a high-risk jurisdiction?
18.
A client from a sanctioned country applies to open an account. What is the correct response?
19.
Which of the following best demonstrates indirect ownership in a complex KYC structure?
20.
Which KYC approach is most appropriate for a correspondent banking relationship?
