Online Access Free CKYCA Practice Test

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.KYC Prong.
• B.Controlling Prong.
• C.Control Party Prong.
• D.Control Prong.

What are the two types of Politically Exposed Persons (PEPS) that are identified by The Financial Action Task Force? (SELECT 2)

• A.Domestic PEPs are individuals who are or have been entrusted domestically with prominent non-public functions.
• 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 public functions.
• D.Foreign PEPs are individuals who are or have been entrusted with prominent public functions by a domestic country.

A KYC analyst is onboarding a client based in a known offshore jurisdiction. Based on the client's incorporation documentation and statement, the purpose of the company is to hold the shares of its subsidiary. Public records and registers indicate that the registered address is also used by multiple other legal entities. Which CDD step should the KYC analyst take?

• A.Follow the KYC requirements for the holding companies
• B.Perform EDD, as the client might be a shell company.
• C.Ask for the client's utility bill confirming the registered address.
• D.Follow the regular KYC requirements as per legal form of the client

Which key elements should be included in CDD?

• A.Account type, court records, open source intelligence information, and a list of reasons to maintain the customer
• B.Customer overview, nature of business or occupation, geographic profile, and summary of red flags C Risk assessment statement risk appetite description and the risk presented by the customer
• C.Customer type, related accounts and activity totals, industry information, and a peer business summary

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

• A.They are in a physical paper form and ownership is controlled by the person who possesses the physical paper in hand.
• B.They can be used to mask the true owner and actual business purpose.
• C.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.
• D.The trustee can use a trust in order to commit financial crime.