A KYC analyst suspects a transaction is related to a sanctioned individual. How should the analyst respond?

• A.Continue with the due diligence onboarding procedure, focusing on primary and secondary documentation.
• B.Discuss the issue with the firm's compliance officer as it is of low priority.
• C.Reach out to the customer to confirm their sanctions status during the onboarding process, and after that, once a year.
• D.Report the issue immediately according to the defined procedures.

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Financial institutions should ensure that a customer's risk weighting:

• A.takes into account economic or profit considerations.
• B.does not exceed automatically generated risk indicators.
• C.is not unduly influenced by just one factor.
• D.is identical throughout the business sector.

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Which customer type represents the highest risk of money laundering to a financial institution?

• A.Payment service provider
• B.Construction company
• C.Accounting firm
• D.Wholesale food distributor

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A KYC analyst notices frequent use of letters of credit as a method of trade finance. It further appears that trades covered by letters of credit are not consistent with the customer's usual business. What should be the next action taken by the KYC analyst?

• A.Notify the Board of Directors and obtain the Board's approval for filing a STR.
• B.Refer internally for a potential suspicious transaction report
• C.Establish internally the existence of a criminal violation.
• D.Prepare to close the customer's account.

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A customer of a bank in the EU has been changing the business activities of their company every month since becoming a customer two years ago. The bank should:

• A.hold the older information for one year and then destroy any records in line with data privacy requirements.
• B.hold the information for a period of time, as specified by the policies of the bank, and in line with the EU AML Directives.
• C.maintain only the current information, because data privacy regulations require old information be destroyed when updated.
• D.keep records of the changing circumstances for as long as the customer holds an account with the bank.

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