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General AML/KYC Concepts

10
  • How often should KYC information be updated?
  • What are the consequences of non-compliance with AML regulations?
  • What is an AML risk assessment?
  • Describe the concept of ‘Politically Exposed Persons’ (PEPs).
  • What is the difference between AML and KYC?
  • Explain the term ‘Beneficial Owner’.
  • What are the key components of a KYC process?
  • Why is AML important for financial institutions?
  • What is Know Your Customer (KYC)?
  • What is Anti-Money Laundering (AML)?

Regulations & Frameworks

10
  • What is the role of the European Banking Authority (EBA) in AML?
  • What is the Financial Industry Regulatory Authority (FINRA)?
  • Describe the AML obligations under the UK’s Money Laundering Regulations 2017.
  • What is a Suspicious Activity Report (SAR)?
  • What are the EU’s AML Directives?
  • What is the role of the Office of Foreign Assets Control (OFAC)?
  • Explain the concept of ‘Enhanced Due Diligence’ (EDD).
  • What is the role of FinCEN in AML?
  • What is the USA PATRIOT Act?
  • What are the FATF’s 40 Recommendations?

Risk & Transaction Monitoring

10
  • What are the key elements of a risk-based AML strategy?
  • How do you handle high-risk customers?
  • What are ‘Red Flags’ in AML monitoring?
  • Explain the concept of ‘Transaction Monitoring’.
  • What is the significance of customer risk profiling?
  • How do you evaluate the effectiveness of AML controls?
  • What are some common indicators of money laundering?
  • How does a risk-based approach improve AML compliance?
  • What factors should be considered when assessing customer risk?
  • How do you conduct a risk assessment for AML?

Customer Due Diligence (CDD)

11
  • How do you handle high-net-worth individuals (HNWIs) in KYC processes?
  • What are the typical KYC documentation requirements for corporate clients?
  • Explain the term ‘Ongoing Monitoring’ in the context of KYC.
  • What is a KYC risk assessment?
  • How do you verify the source of funds in CDD?
  • How do you handle discrepancies in customer identification information?
  • What is the purpose of Enhanced Due Diligence (EDD)?
  • What is the purpose of verifying a customer’s source of funds?
  • Describe the process of the Customer Identification Program (CIP).
  • What information is typically required for CDD?
  • What is the difference between Basic Due Diligence (BDD) and Enhanced Due Diligence (EDD)?

Policies & Program Management

9
  • What is the importance of record-keeping in AML?
  • What is the role of a Compliance Committee in AML?
  • What is the significance of AML training for employees?
  • How do you handle policy updates and changes in AML regulations?
  • What is a Compliance Officer’s role in AML?
  • How do you ensure AML policies are effectively communicated to employees?
  • What is the role of internal audits in AML compliance?
  • How do you develop an effective AML program?
  • What are the key elements of an AML policy?

Case Studies & Technology

9
  • How can organizations improve their AML compliance program?
  • What role does technology play in modern AML practices?
  • Describe a successful AML strategy implemented by a financial institution.
  • What are the common pitfalls in AML compliance?
  • How can organizations prevent similar scandals from occurring?
  • What are the key takeaways from the Wells Fargo fake accounts scandal?
  • How did the Panama Papers scandal affect AML practices?
  • What lessons can be learned from the HSBC money laundering case?
  • Describe a high-profile case of money laundering and its impact.

Emerging Trends & Best Practices

10
  • What is the impact of international AML standards on local regulations?
  • How does GDPR impact AML practices?
  • What are the best practices for AML documentation and record-keeping?
  • How can financial institutions ensure effective AML training for employees?
  • What are the key features of an effective AML software solution?
  • What is the significance of collaboration between financial institutions and regulators?
  • How does RegTech (Regulatory Technology) support AML compliance?
  • What is the role of data analytics in AML compliance?
  • How is blockchain technology impacting AML practices?
  • What are the emerging trends in AML compliance?

Culture, Ethics & Audits

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  • How do you evaluate the effectiveness of an AML compliance program?
  • What are the best practices for managing AML compliance teams?
  • How can organizations manage conflicts between AML compliance and business objectives?
  • What are the benefits of an internal AML audit?
  • How do you promote transparency in AML processes?
  • What is the impact of leadership on AML compliance?
  • How should an organization handle ethical dilemmas in AML compliance?
  • What are the ethical considerations in AML compliance?
  • How can organizations build a strong AML compliance culture?
  • What is the role of compliance culture in AML effectiveness?

Sector-Specific AML

11
  • How would you handle a situation where a customer refuses to provide KYC information?
  • How do AML regulations apply to trade finance?
  • What are the AML considerations for private equity and venture capital firms?
  • How do AML requirements impact the gaming and casino industry?
  • What are the specific AML considerations for non-profit organizations?
  • How do AML regulations affect insurance companies?
  • What are the AML challenges in the real estate sector?
  • How do AML requirements apply to cryptocurrency exchanges?
  • What are the AML risks associated with online financial services?
  • How does AML compliance differ in investment firms compared to banks?
  • What are the AML challenges specific to the banking sector?
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  • How often should KYC information be updated?

How often should KYC information be updated?

< 1 min read

Updates should be done periodically based on the customer’s risk rating. Typically, every 2-5 years for higher-risk customers. Updates are also mandatory when there is a significant change to customer information or risk profile.

risk-based, periodic review, 2-5 years, significant changes

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