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Understanding KYC in Banking Flashcards | StudBud

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Understanding KYC in Banking

10 terms·StudBud Administration·1 play

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Questions 10

Answers

1
Customer Due Diligence should continue after the onboarding process
False
True
2
Which of the following is not a component of KYC?
Customer Due Diligence
Customer Identification Program
Continuous Monitoring
Customer Background Information
3
RFI stand for Request for Information
False
True
4
This process can be defined as: Processe used by banks to collect and evaluate important customer(potential) information
Continuous Monitoring
Customer Due Diligence
Customer Identification Program
Customer Background Information
5
Which of the following may result in a KYC trigger?
Unusual transaction activity
Change in the nature of a Client’s Business
All of the above
New parties in the account
6
Why is KYC Important?
All of the Above
Protect Reputational Risk
Prevent Criminal Activity
Prevent Financial Penalties
7
Every financial institution conducts its own CIP process based on its ____
Risk Profile
All of the above
Operational cost
Availability
8
What does CDD stand for
Center for Disease Control
Community Development District
Customer Diligence Due
Customer Due Diligence
9
After looking at our transactions, what is potentially suspicious or concerning?
All involved countries are high-risk
Unknown details of payment
Potential structuring / round dollar trending
All of the Above
10
What does KYC stand for?
Know Your Customer (Client)
You Know Customers
Keep Your Cool
Customer Knows You