?? Part -17, Top AML & KYC Interview Questions and Answers??

1. Sanction

• Q1: What are sanctions in the context of financial compliance?

• A: Sanctions are measures imposed by governments or international organizations to restrict or prohibit financial transactions with certain individuals, entities, or countries to achieve specific foreign policy or security objectives.

• Q2: Which entities typically issue sanctions?

• A: Sanctions are issued by governments, such as the U.S. Department of the Treasury (OFAC), the United Nations, the European Union, and other international bodies.

• Q3: What is the consequence of violating sanctions regulations?

• A: Violating sanctions regulations can result in severe penalties, including hefty fines, criminal charges, and reputational damage to the institution involved.

2. PEP (Politically Exposed Persons)

• Q4: What is a Politically Exposed Person (PEP)?

• A: A PEP is an individual who holds or has held a prominent public position, such as a government official, politician, or senior executive of a state-owned enterprise, and is therefore at higher risk for involvement in corruption.

• Q5: Why is it important to identify PEPs in financial transactions?

• A: Identifying PEPs is important because they pose a higher risk for money laundering, corruption, and bribery. Financial institutions must apply enhanced due diligence to mitigate these risks.

• Q6: What is the role of family members and close associates in PEP identification?
• A: Family members and close associates of PEPs are also considered high-risk and must be screened as part of a comprehensive risk assessment for money laundering or illicit activity.

3. EDD (Enhanced Due Diligence)

• Q7: What is Enhanced Due Diligence (EDD)?

• A: EDD is a more detailed and thorough process of assessing and monitoring the risks associated with higher-risk customers or transactions, particularly when a customer is a PEP or is from a high-risk jurisdiction.

• Q8: When should a financial institution apply EDD?

• A: EDD should be applied when a customer or transaction presents higher risks, such as when a customer is a PEP, involved in complex or unusual transactions, or located in high-risk jurisdictions.

• Q9: What kind of information is typically collected in EDD?
• A: EDD typically includes gathering detailed information about the customer’s source of wealth, business activities, and the purpose of the transaction.

Direct Message ? me to access this amazing study content in PDF format ?? ??

1. Ebooks:

-Top 101 AML-KYC Interview Questions and Answers

-Due Diligence in the AML-KYC World: A Comprehensive Guide of Due Diligence & Types of Due Diligence in AML-KYC

2. Domestic vs. Foreign Politically Exposed Persons (PEPs)

3. The 6 Types of Sanctions

4. Money Laundering and Cryptocurrency

5. Global Money Laundering Case Studies

6. From Basic to Advanced: AML and KYC Guide

7. FCA Regulated Firms’ Treatment of PEPs

8. Cyber-Enabled Fraud and; Illicit Money Flows by CAMS

9. Targeted Update on FATF Standards for Virtual Assets amp; VASP

10. …and much more!

??Interview Preparation AssistanceI am here to provide tailored study resources and guidance to support your career advancement.

#AML #KYC #Compliance #CFBR

By Anand Rajpurohit