ACAMS CKYCA Daily Practice Exam New 2023 Updated 72 Questions
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NEW QUESTION 35
Shell and Shelf Companies are usually what level of customer risk?
- A. Medium.
- B. Low.
- C. High.
- D. Immediately Rejected due to their business profile.
Answer: C
NEW QUESTION 36
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. Dripping off
- B. Tipping off
- C. Dipping off
- D. Ripping off
Answer: B
NEW QUESTION 37
The following are some attributes of reliable sources to use in the EDD process. (SELECT 2)
- A. later publication date.
- B. Industry-recognized.
- C. Internal and external consistency.
- D. Reputable and biased.
Answer: B,C
NEW QUESTION 38
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 39
What corporate vehicles can a money launderer hide behind, where it is difficult to identify the beneficial owner? (SELECT 4)
- A. Regulated investment advisors
- B. Trusts.
- C. Private investment companies.
- D. Sole Proprietors.
- E. Shell companies.
Answer: B,C,D,E
NEW QUESTION 40
Trade finance, which is the provision or credit for domestic and international trade transactions is likely?
- A. Usually a Medium Risk Produce.
- B. Usually a Low Risk Product.
- C. It depends on the Anti-Money Laundering program.
- D. Usually a High Risk Product
Answer: D
NEW QUESTION 41
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 college.
- D. Identification from another financial institution.
- E. Identification from a utility company.
Answer: C,D,E
NEW QUESTION 42
What is the Primary European Union Money Laundering regulation?
- A. 4th Anti-Money Laundering Act.
- B. 5th Anti-Money Laundering Act.
- C. 2nd Anti-Money Laundering Directive.
- D. 3rd Anti-Money Laundering Directive
- E. 5th Anti-Money Laundering Directive.
Answer: E
NEW QUESTION 43
What is the First Line of Defense? (FLOD)
- 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 internal audit. They perform an independent review of the controls applied by the lines of defense.
- C. 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.
Answer: A
NEW QUESTION 44
Are Immediate family members, relatives, and close associates of PEPS classified as PEPS?
- A. No.
- B. Perhaps.
- C. Yes.
Answer: B
NEW QUESTION 45
For benefitial ownership, the exact account-opening procedures and customer acceptance policies will depend on the type of? (SELECT 3)
- A. Product.
- B. Customer.
- C. Geography.
- D. Local Regulations.
- E. Risk.
Answer: B,D,E
NEW QUESTION 46
What Boolean operator words can be used in for searching in EDD? (SELECT 2)
- A. PLUS.
- B. OR.
- C. AND.
- D. EQUAL.
Answer: B,C
NEW QUESTION 47
In the Customer Identification Program (CIP) What are the basic information required to identify a legal person is? (SELECT 3)
- A. Source of Wealth.
- B. Legal Name.
- C. Identification number issued by government.
- D. Source of Funds.
- E. Address, including legal and place of business.
Answer: B,C,E
NEW QUESTION 48
What risks are you looking for when a client has requires Enhanced Due Diligence (EDD) (Select 3)
- A. Political Risks.
- B. Bank Risks.
- C. Transaction Risks.
- D. Integrity.
- E. Litigation Risks.
Answer: A,D,E
NEW QUESTION 49
Although you might find all the information you gathered throughout your research to be interesting, should include only relevant information in your final report?
- A. No
- B. Depends on the discretion of the analyst.
- C. Yes.
Answer: C
NEW QUESTION 50
Is collecting identification a legal requirement in jurisdictions?
- A. No.
- B. Yes.
- C. Most.
Answer: C
NEW QUESTION 51
What is the advantage of Bearer Shares? (SELECT 3)
- A. They are an excellent, quick effective way to set up a business in Delaware, Nevada, and Wyoming
- B. Tax haven countries and their strict secrecy laws can further conceal the true ownership.
- C. They are a more affordable way of setting up a business in certain countries in the Caribbean.
- D. They can be held under agreement by professionals as another layer of secrecy.
- E. They can't be traced to a central registry because whoever carries them is the purported owner.
Answer: B,D,E
NEW QUESTION 52
When is comes to Enhanced Due Diligence (EDD) regulators require you to do a perfect job on the client.
- A. TRUE.
- B. FALSE.
Answer: B
NEW QUESTION 53
Most Organizations Use the three risk classifications for customers.
What are they? (SELECT 3)
- A. Low.
- B. Medium.
- C. Moderate.
- D. EDD-High.
- E. High.
- F. Very High.
Answer: A,B,E
NEW QUESTION 54
Jurisdictions with high risk usually have (SELECT 4)
- A. Host shell and shelf companies.
- B. Poverty
- C. Inadequate regulatory and judicial frameworks to prevent terror financing
- D. Poor anti-money laundering regulations.
- E. High levels of corruption
Answer: A,C,D,E
NEW QUESTION 55
What is the purpose of having controls to Know Your Customer, also known as KYC?
- A. Manage the compliance risk of your organization.
- B. Manage the financial crime risk to your customer.
- C. Manage the compliance risk of your customer.
- D. Manage the financial crime risk to your organization.
Answer: D
NEW QUESTION 56
What stage is the explore step in the 4 step process with regards to the 4-step research model?
- A. 1st.
- B. 4th.
- C. 3rd.
- D. 2nd.
Answer: D
NEW QUESTION 57
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. Control Prong.
- C. KYC Prong.
- D. Controlling Prong.
Answer: B
NEW QUESTION 58
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