Aditi Consulting Interview Questions and Answers

Pooled accounts refer to accounts where funds from multiple individuals or entities are combined into a single account.

• Pooled accounts are commonly used by investment funds, such as mutual funds or hedge funds, to pool together the investments of multiple investors.

• These accounts allow for diversification of investments and can be managed by a fund manager.

• The funds in a pooled account are typically invested in various assets, such as stocks, bonds, or other securities.

• Profit...read more

The parameters for enhanced due diligence are customer location, financial status, nature of business, and purpose of transaction.

• Enhanced due diligence is a more thorough investigation of a customer's risk profile.

• Customer location can indicate higher risk jurisdictions.

• Financial status can reveal potential for money laundering or terrorist financing.

• Nature of business can indicate higher risk industries.

• Purpose of transaction can reveal potential for illicit activity.

• Exampl...read more

Enhanced due diligence parameters include high-risk customers, politically exposed persons, complex ownership structures, and unusual transactions.

• Identifying high-risk customers based on their industry, location, or transaction history

• Conducting enhanced due diligence on politically exposed persons (PEPs) and their close associates

• Investigating complex ownership structures to identify ultimate beneficial owners (UBOs)

• Monitoring for unusual transactions that may indicate mone...read more

KYC Policy refers to the set of guidelines and procedures that a financial institution follows to verify the identity of its clients.

• KYC Policy is a crucial part of AML compliance.

• It outlines the procedures for verifying the identity of clients and assessing their risk.

• It includes guidelines for customer due diligence, ongoing monitoring, and record-keeping.

• Examples of KYC Policy include verifying the identity of clients through government-issued IDs, conducting background ch...read more

Suspicious transactions can be identified by analyzing transaction patterns, customer behavior, and red flags.

• Analyze transaction patterns such as unusual frequency, amounts, or destinations

• Monitor customer behavior such as sudden changes in activity or account information

• Look for red flags such as high-risk countries, politically exposed persons, or unusual business activities

• Use transaction monitoring software to flag potential suspicious activity

• Collaborate with law enforc...read more

Customer Acceptance Policy outlines the criteria for onboarding new customers and ongoing monitoring.

• The policy should include risk assessment procedures

• It should define the types of customers the institution will not do business with

• It should outline the documentation required for customer identification and verification

• It should specify the frequency and scope of ongoing monitoring

• It should be regularly reviewed and updated

• Example: A bank may refuse to do business with cust...read more