10+ KYC Analyst Interview Questions and Answers for Freshers

PEP stands for Politically Exposed Person. They are individuals who hold a prominent public position or have close associations with such individuals.

• PEPs are considered high-risk customers due to their potential involvement in corruption, money laundering, and other financial crimes.

• Examples of PEPs include government officials, heads of state, and senior executives of state-owned enterprises.

• Other threats in the KYC process include individuals or entities involved in terror...read more

AML is Anti-Money Laundering, a set of laws, regulations, and procedures to prevent illegal activities like money laundering and terrorism financing.

• AML is a regulatory framework that financial institutions must follow to prevent money laundering and terrorist financing.

• It involves identifying and verifying the identity of customers, monitoring transactions, and reporting suspicious activities.

• CDD (Customer Due Diligence) is the process of verifying the identity of a customer...read more

Finance deals with managing money and investments, while accounting deals with recording and reporting financial transactions.

• Finance involves making financial decisions and managing investments, such as deciding how to allocate funds and analyzing financial data to make predictions.

• Accounting involves recording financial transactions, preparing financial statements, and ensuring compliance with financial regulations.

• Finance is more focused on the future and making strategic ...read more

Due diligence is determined based on risk factors and can be categorized into different types such as basic, enhanced, and ongoing due diligence.

• Due diligence is decided based on the risk associated with the client or transaction.

• Types of due diligence include basic due diligence, enhanced due diligence, and ongoing due diligence.

• Basic due diligence involves verifying the identity of the client and assessing the risk level.

• Enhanced due diligence is conducted for high-risk cli...read more

AML stands for Anti-Money Laundering. It is crucial in preventing financial crimes and ensuring compliance with regulations.

• AML refers to the laws, regulations, and procedures put in place to prevent criminals from disguising illegally obtained funds as legitimate income.

• It is important because it helps detect and prevent money laundering, terrorist financing, and other financial crimes.

• Financial institutions are required to have AML programs in place to comply with regulatio...read more

Yes, Israel is considered a sanctioned country by some countries and organizations.

• Israel is not sanctioned by all countries, but some countries and organizations do have sanctions in place.

• Sanctions may include restrictions on trade, financial transactions, and travel.

• Examples of countries that have imposed sanctions on Israel include Iran and some Arab League countries.

There are two main types of exchanges: centralized exchanges (CEX) and decentralized exchanges (DEX).

• Centralized exchanges (CEX) are operated by a central authority and require users to deposit funds with the exchange to trade.

• Decentralized exchanges (DEX) operate without a central authority and allow users to trade directly with each other using smart contracts.

• Examples of centralized exchanges include Binance, Coinbase, and Kraken.

• Examples of decentralized exchanges include...read more

KYC stands for Know Your Customer and AML stands for Anti-Money Laundering. They are regulatory processes to prevent financial crimes.

• KYC is the process of verifying the identity of customers to prevent fraud and financial crimes.

• AML is the set of procedures, laws, and regulations designed to prevent the practice of generating income through illegal actions.

• KYC involves verifying customer identity, assessing risks, and monitoring transactions.

• AML focuses on detecting and repo...read more

KYC stands for Know Your Customer, a process used by financial institutions to verify the identity of their clients.

• KYC is a regulatory requirement to prevent money laundering, terrorist financing, and other financial crimes.

• It involves collecting personal information and verifying the identity of customers.

• KYC includes verifying documents such as government-issued IDs, proof of address, and financial statements.

• The process helps financial institutions assess the risk of doin...read more

AML stands for Anti-Money Laundering, a set of regulations and procedures designed to prevent the illegal generation of income.

• AML refers to the laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income.

• Financial institutions are required to have AML programs in place to detect and report suspicious activities.

• Examples of AML measures include customer due diligence, transaction monitoring, and reporting of su...read more

Sanction refers to a penalty or measure imposed on individuals, entities, or countries for violating laws or regulations.

• Sanctions can include financial penalties, trade restrictions, travel bans, and asset freezes.

• They are often imposed by governments or international organizations to enforce compliance with laws or policies.

• Examples of sanctions include the United Nations sanctions on North Korea for its nuclear weapons program, and the US sanctions on Iran for its human ri...read more

The end-to-end KYC process involves collecting, verifying, and monitoring customer information to ensure compliance with regulations.

• Collecting customer information such as identification documents and personal details

• Verifying the authenticity of the information provided through various checks and screenings

• Monitoring customer transactions and behavior for any suspicious activities

• Updating customer records regularly to ensure compliance with regulations

• Examples: conducting i...read more