General AML/KYC Concepts
How often should KYC information be updated?
Last Updated: November 2, 2025Updates should be done periodically based on the customer’s risk rating. Typically, every 2-5 years for higher-risk customers. Updates are...
What are the consequences of non-compliance with AML regulations?
Last Updated: November 2, 2025Consequences are severe, including significant financial penalties (fines), criminal prosecution of individuals, regulatory sanctions (cease-and-desist orders), and severe reputational and...
What is an AML risk assessment?
Last Updated: November 2, 2025It is a structured process to identify, evaluate, and prioritize potential money laundering and terrorist financing risks based on factors...
Describe the concept of ‘Politically Exposed Persons’ (PEPs).
Last Updated: November 2, 2025PEPs are individuals holding prominent public office or having significant public influence. Due to their position, they are classified as...
What is the difference between AML and KYC?
Last Updated: November 2, 2025AML is the broad regulatory framework to combat financial crime. KYC is a specific operational process under the AML umbrella,...
Explain the term ‘Beneficial Owner’.
Last Updated: November 2, 2025A Beneficial Owner (BO) is the ultimate natural person who owns, controls, or exercises ultimate effective control over a legal...
What are the key components of a KYC process?
Last Updated: November 2, 2025The four key pillars are: Customer Identification and Verification (CIP), Risk Assessment, Ongoing Monitoring, and periodic data updates.
Why is AML important for financial institutions?
Last Updated: November 2, 2025It is crucial for preventing misuse of the institution for illicit purposes, protecting the financial system’s integrity, and avoiding significant...
What is Know Your Customer (KYC)?
Last Updated: November 2, 2025KYC is the mandatory process of verifying a customer’s identity and understanding their business to mitigate risks of fraud, money...
What is Anti-Money Laundering (AML)?
Last Updated: November 2, 2025AML is a comprehensive set of legal and regulatory requirements aimed at preventing, detecting, and reporting the criminal act of...
