10+ Risk and Compliance Analyst Interview Questions and Answers

The stages of AML include customer identification, transaction monitoring, and reporting. Types of alerts in transaction monitoring include high-risk transactions, unusual activity, and potential money laundering. Sanctions refer to restrictions imposed on individuals or entities by governments or international organizations.

• Stages of AML: customer identification, transaction monitoring, reporting

• Types of alerts in transaction monitoring: high-risk transactions, unusual activ...read more

CDD is basic due diligence while EDD is enhanced due diligence.

• CDD is a standard process of verifying the identity of a customer and assessing the risk associated with them.

• EDD is a more thorough process that involves gathering additional information about the customer to mitigate higher risks.

• CDD is typically used for low-risk customers while EDD is used for high-risk customers.

• Examples of EDD include conducting background checks, reviewing financial statements, and obtainin...read more

Sanctioned countries are those that have been subjected to economic or political restrictions by other countries or international organizations.

• Sanctions are typically imposed as a means of exerting pressure on a country to change its behavior.

• Sanctions can include trade restrictions, financial restrictions, travel bans, and arms embargoes.

• Examples of currently sanctioned countries include Iran, North Korea, Syria, and Venezuela.

Banking process refers to the set of activities and procedures involved in managing financial transactions within a bank.

• Banking process involves opening and closing accounts, processing deposits and withdrawals, issuing loans and credit cards, and managing investments.

• It also includes compliance with regulatory requirements, risk management, and fraud prevention.

• Examples of banking processes include account opening procedures, loan application processes, and transaction proc...read more

KYC AML process is a set of procedures and policies designed to prevent money laundering and terrorist financing.

• KYC (Know Your Customer) involves verifying the identity of customers and assessing their potential risks

• AML (Anti-Money Laundering) involves monitoring transactions and reporting suspicious activities

• The process includes customer due diligence, risk assessment, ongoing monitoring, and reporting

• Financial institutions and other regulated entities are required to com...read more

KYC stands for Know Your Customer and is a process of verifying the identity of clients. Enhanced Due Diligence is a more thorough investigation of high-risk clients.

• KYC is a regulatory requirement for financial institutions to prevent money laundering and terrorist financing

• It involves collecting and verifying customer information such as name, address, and identification documents

• EDD is a more in-depth investigation of high-risk clients, such as politically exposed persons ...read more

CDD stands for Customer Due Diligence and EDD stands for Enhanced Due Diligence.

• CDD is a process of verifying the identity of a customer and assessing the risks associated with them.

• EDD is a more detailed and thorough process of due diligence that is conducted for high-risk customers.

• CDD is mandatory for all customers, while EDD is only required for high-risk customers.

• Examples of high-risk customers include politically exposed persons (PEPs), customers from high-risk countri...read more

AML process involves identifying, assessing, and monitoring risks associated with money laundering.

• Customer Due Diligence (CDD) to verify customer identity and assess risk

• Transaction Monitoring to detect suspicious activity

• Reporting suspicious activity to authorities

• Ongoing monitoring of customer activity

• Risk-based approach to determine level of due diligence required

• Training employees on AML policies and procedures

ISO controls are implemented to ensure compliance with international standards and address potential issues.

• Implemented ISO controls to address risks and ensure compliance with standards

• Regularly review and update controls to address new issues and changes in regulations

• Examples include implementing access controls to protect sensitive data and conducting regular audits to ensure compliance

Entities can be classified into different types based on their legal structure and purpose.

• Sole Proprietorship: owned and operated by one individual

• Partnership: owned and operated by two or more individuals

• Corporation: a legal entity separate from its owners

• Limited Liability Company (LLC): combines elements of partnerships and corporations

• Nonprofit Organization: operates for charitable, educational, or other public purposes

I have worked on domains such as financial services, healthcare, and technology.

• Financial services

• Healthcare

• Technology

As a Risk and Compliance Analyst, it is important to monitor the situation closely and assess potential impacts on financial markets and regulatory compliance.

• Monitor geopolitical developments and assess potential risks to financial markets

• Stay informed on sanctions and regulatory measures imposed on Russia

• Analyze potential impacts on international trade and supply chains

• Consider implications for compliance with anti-money laundering and sanctions regulations

• Evaluate potentia...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 before providing services.

• Examples of KYC documents include government-issued IDs, proof of address, and financial statements.

• Failure to comply with KYC regulations can re...read more

The question is asking for the sum of alternate numbers entered by the user.

• To calculate the sum of alternate numbers, you need to identify which numbers are alternate.

• For example, if the user enters 1, 2, 3, 4, 5, the alternate numbers would be 1, 3, 5.

• You can then sum up these alternate numbers to get the final result.