What is legal risk? (SELECT 2)

• A.A warning from a regulator.
• B.An employee who commits a crime unrelated to the organization.
• C.An organization breaks laws when doing business.

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Most Organizations Use the three risk classifications for customers.
What are they? (SELECT 3)

• A.Medium.
• B.High.
• C.EDD-High.
• D.Low.
• E.Moderate.
• F.Very High.

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The owner of a local flower shop makes cash deposits on a regular basis to the shop's business account. Following the deposits, the owner wires the money to a high-risk country. Which action should a KYC analyst perform when conducting the periodic CDD review?

• A.Review the account activity with respect to the transaction profile of the customer.
• B.Review the business activities and update where necessary.
• C.End the business relationship due to wiring money to a high-risk country.
• D.Report a suspicious transaction with respect to wiring money to a high-risk country.

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Are Immediate family members, relatives, and close associates of PEPS classified as PEPS?

• A.Yes.
• B.No.
• C.Perhaps.

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During the onboarding process of a new customer, it is noted that the customer is a politically exposed person opening a private banking account and has a foreign passport. Which statement best describes the industry best practice for the institution?

• A.Enhanced monitoring may be decided on by the business line manager.
• B.Simplified monitoring is required per the customer risk criteria.
• C.Simplified monitoring should occur on a yearly basis.
• D.Mandatory periodic review should occur on at least an annual basis

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