1.
What is the best course of action if a legal entity has nominee shareholders and no natural person can be identified as UBO?
2.
A politically exposed person (PEP) is found to be indirectly related to the client through marriage. What should the compliance team 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.
What is the most appropriate type of due diligence for a politically exposed person (PEP)?
5.
In KYC for a corporate customer, Ultimate Beneficial Ownership (UBO) must be established when ownership is:
6.
A client insists on using only cash for transactions. What risk does this pose?
7.
What does Adverse Media Screening help detect?
8.
Which KYC approach is most appropriate for a correspondent banking relationship?
9.
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?
10.
What is the best action if an entity’s ownership is layered through 3 offshore companies?
11.
Which of the following scenarios most likely requires Enhanced Due Diligence (EDD) under FATF guidelines?
12.
A client from a sanctioned country applies to open an account. What is the correct response?
13.
PEP screening is important because:
14.
Which of the following best demonstrates indirect ownership in a complex KYC structure?
15.
Which of the following best describes the role of Customer Risk Rating (CRR) in a Risk-Based Approach (RBA) to KYC?
16.
What is the primary goal of Enhanced Due Diligence (EDD)?
17.
Which risk mitigation action is most appropriate when onboarding a foreign charity operating in a high-risk jurisdiction?
18.
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?
19.
In a KYC context, what does “control through other means” refer to in UBO identification?
20.
Which of the following best indicates a shell company?
