BNY KYC Analyst Interview Questions and Answers

ML refers to money laundering, while terrorist financing involves funding illegal activities for terrorist purposes.

• ML involves disguising the origins of illegally obtained money, while terrorist financing involves providing funds for terrorist activities.

• ML is typically a financial crime that involves a series of transactions to make the money appear legitimate, while terrorist financing directly supports acts of terr...read more

Source of fund refers to where the money comes from, while wealth of fund refers to the total value of the fund.

• Source of fund is the origin of the money, such as salary, inheritance, or investment returns.

• Wealth of fund is the total value of the fund, including the initial investment amount and any additional contributions or returns.

• Source of fund is more focused on the origin or nature of the money, while wealth of ...read more

SIP stands for Source of Income and Wealth, while PEP stands for Politically Exposed Person.

• SIP refers to the source of income and wealth of a customer, while PEP refers to individuals who are or have been entrusted with prominent public functions.

• SIP is used to assess the legitimacy of funds, while PEP is used to identify potential risks associated with politically exposed individuals.

• Examples of SIP include salary, i...read more

I have a strong interest in continuous learning and self-improvement.

• I actively seek out new information and skills to enhance my knowledge.

• I enjoy taking courses, attending workshops, and reading books to expand my expertise.

• I am always open to feedback and constructive criticism to grow professionally.

• I believe that learning is a lifelong journey and I am committed to staying updated in my field.

The process involves verifying the identity of customers to ensure compliance with regulations and prevent financial crimes.

• Collecting customer information and documentation

• Conducting risk assessments

• Performing due diligence checks

• Monitoring transactions for suspicious activity

• Reporting any suspicious findings to authorities

KYC (Know Your Customer) and AML (Anti-Money Laundering) are regulatory processes used by financial institutions to verify customer identities and prevent money laundering.

• KYC is the process of verifying the identity of customers and assessing their potential risks.

• AML refers to the measures taken to prevent money laundering, terrorist financing, and other financial crimes.

• KYC and AML are important for financial instit...read more

Mutual funds and hedge funds are investment vehicles that pool money from multiple investors to invest in various securities.

• Mutual funds are managed by professional fund managers and offer a diversified portfolio of stocks, bonds, and other assets.

• Investors in mutual funds own shares of the fund and earn returns based on the performance of the underlying securities.

• Hedge funds are typically available only to accredite...read more

Risk in KYC is categorized based on the level of threat posed by a customer's profile and activities.

• Risk is categorized as low, medium, or high based on factors such as customer profile, transaction history, and geographical location.

• Examples of risks involved in KYC include money laundering, terrorist financing, fraud, and identity theft.

• KYC analysts assess the risks associated with each customer to ensure compliance

PEP stands for Politically Exposed Person, referring to individuals who hold prominent public positions or have close associations with such individuals.

• PEPs are individuals who are entrusted with prominent public functions, such as government officials, heads of state, or high-ranking military officers.

• Family members or close associates of PEPs are also considered as PEPs due to their potential influence and access to...read more