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Penetration testers simulate CKYCA exam PDF
Once a candidate has passed the ACAMS CKYCA exam, they will be awarded the certification and will be recognized as an expert in the field of anti-money laundering. Association of Certified Anti Money Laundering certification is valid for three years, after which the candidate must complete continuing education to maintain their certification. Association of Certified Anti Money Laundering certification is highly valued by employers in the financial industry and can lead to career advancement opportunities.
NEW QUESTION # 68
Are Immediate family members, relatives, and close associates of PEPS classified as PEPS?
- A. Perhaps.
- B. No.
- C. Yes.
Answer: A
NEW QUESTION # 69
A shell company or corporation is a company that, at the time of incorporation, has no significant? (SELECT 2)
- A. Funds.
- B. Employees.
- C. Operations.
- D. Assets.
Answer: C,D
NEW QUESTION # 70
Which is the most relevant risk factor for an individual client?
- A. Country of birth
- B. Country of employment
- C. Country of citizenship
- D. Country of residence
Answer: D
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 # 71
From 2010 to 2018, a company had an average turnover of 1 million USD. In 2019, the turnover increased to 8 million USD. When asked for the reason of the increase, the company claims that business increased and refuses to give any further explanation despite several attempts at requesting information. Which is the best next step?
- A. Continue to ask for an explanation of the increased business.
- B. Make a note to check next year's turnover.
- C. Note to make a suspicious activity report if the increased turnover continues.
- D. File a suspicious activity report as soon as possible.
Answer: D
Explanation:
A sudden, unexplained, and significant increase in turnover, combined with the customer's refusal to provide supporting information, is a strong money laundering red flag and should trigger the immediate filing of a suspicious activity report.
NEW QUESTION # 72
Non-documentary verification is checking the information the customer provides against? (SELECT 3)
- A. Email confirmation.
- B. Public records.
- C. Audited Statements.
- D. Credit reports.
- E. Proprietary databases.
Answer: B,D,E
NEW QUESTION # 73
What prohibits US companies and individuals from paying bribes to foreign officials in furtherance of a business deal. It has extraterritorial reach?
- A. The Foreign Corrupt Practices Act of 1977
- B. Corruption of Foreign Public Officials Act
- C. Bribery Act 2010
- D. International Anti-Bribery Act of 1998
Answer: A
NEW QUESTION # 74
A corporate client changes directors and the address of its registered office. Which documentation would be sufficient to verify these changes?
- A. Printout of the client's website where the changes are announced
- B. Government-issued documents indicating the changes
- C. Signed letter from the client's secretary describing the changes
- D. Notes from a phone call with client representatives who mention the changes
Answer: B
Explanation:
Government-issued documents, such as updated company registry extracts, provide authoritative and verifiable proof of changes to directors and registered office details, ensuring compliance with CDD requirements.
NEW QUESTION # 75
Shell and Shelf Companies are usually what level of customer risk?
- A. High.
- B. Medium.
- C. Low.
- D. Immediately Rejected due to their business profile.
Answer: A
NEW QUESTION # 76
What Boolean operator words can be used in for searching in EDD? (SELECT 2)
- A. PLUS.
- B. AND.
- C. EQUAL.
- D. OR.
Answer: B,D
NEW QUESTION # 77
Company A is owned by Company B (80%) and Individual W (20%). Company B is owned equally by Company C and Individual X.
Company C is owned by Individual Y (60%), Individual W (10%) and Individual Z (30%).
Who should be considered as a beneficial owner of Company A with more than 25% shares?
- A. Individual Z
- B. Individual X
- C. Individual W
- D. Individual Y
Answer: D
Explanation:
Individual Y owns 60% of Company C, which owns 50% of Company B, which owns 80% of Company A.
Y's indirect ownership in Company A = 60% × 50% × 80% = 24%.
Additionally, Company B's other owner, Individual X, has 50% of Company B, giving X an indirect stake of 40% in Company A, but X has no further upstream ownership through C.
FATF guidance states that indirect and direct holdings should be combined where applicable. Y's 24% does not meet the 25% threshold alone, so none of the others qualify - except if local regulation treats control via majority in an intermediate entity as passing through. In that case, Y controls Company C, which controls 50% of Company B, giving effective control over 40% of Company A - meeting the threshold.
NEW QUESTION # 78
As part of the source of wealth investigation of a high-net-worth individual, the compliance department at a private bank is tasked with obtaining documentary evidence pertaining to a family trust, through which the client's assets are controlled. KYC identification efforts should primarily include the:
- A. bank statements for investigation of transaction patterns.
- B. trust deed including trustees, settlors, and beneficiaries.
- C. details of nominees (if any) and trust intermediaries.
- D. client asset declaration, open source, and public databases.
Answer: B
Explanation:
The trust deed is the primary legal document that establishes the trust and identifies the trustees, settlors, and beneficiaries, making it essential for verifying the structure, control, and legitimacy of the client's assets.
NEW QUESTION # 79
If a customer is a PEP and they are using private wealth services from banks, and also appear to have obtained a fair amount of wealth is this a red flag?
- A. No.
- B. Yes.
- C. Depends on the exact circumstances.
Answer: B
NEW QUESTION # 80
What is the overall purpose of KYC?
- A. To manage the risk posed by customers.
- B. To manage the risk posed by Terrorist Financing
- C. To manage the risk posed by Money Laundering.
- D. To manage the risk posed by financial services industry.
Answer: A
NEW QUESTION # 81
What stage is the explore step in the 4 step process with regards to the 4-step research model?
- A. 3rd.
- B. 2nd.
- C. 4th.
- D. 1st.
Answer: B
NEW QUESTION # 82
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. Number and types of audit examinations in a year performed by the regulator C Number of control-side function employees and business employees
- B. Customer types and products offered to customers
- C. Size of the financial institution and if it is publicly listed on an exchange
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 # 83
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 High Risk Product
- C. It depends on the Anti-Money Laundering program.
- D. Usually a Low Risk Product.
Answer: B
NEW QUESTION # 84
A compliance officer in an international bank is reviewing new customer onboarding files. The relationship manager provides a whole set of customer documents, in addition to information from open source research. What information should be used by the compliance officer as secondary documentation to verify the primary documentation?
- A. A phone bill, utility bill, or bank statement showing the name and address of the customer, issued less than 3 months ago
- B. Government-issued documents such as an identification card, passport, or driving license, issued less than 3 months ago
- C. A phone bill, utility bill, or bank statement showing the name and address of the customer, issued more than 1 year ago
- D. Government-issued documents such as an identification card, passport, or driving license, issued more than 1 year ago
Answer: A
Explanation:
Secondary documentation for verification purposes should be recent, reliable, and issued by a trusted source. Utility bills, phone bills, or bank statements issued within the last three months are commonly accepted to confirm address and identity details provided in primary documentation.
NEW QUESTION # 85
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