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Free CKYCA Practice Questions

10 free, exam-style Certified Know Your Customer Associate (CKYCA) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CKYCA practice test to study every exam domain.

Question 1

A customer makes 15 cash deposits of $9,500 each over two weeks, each at a different branch. This activity is MOST consistent with:

  1. Normal business operations for a multi-location company
  2. Structuring (smurfing) to avoid reporting thresholds
  3. Investment activity across multiple portfolio accounts
  4. Systematic loan repayment through multiple branches
Show answer & explanation

Correct answer: B - Structuring (smurfing) to avoid reporting thresholds

Question 2

A customer is identified as the spouse of a foreign government minister. Under most regulatory frameworks, this individual should be classified as:

  1. Not a PEP since they hold no government position themselves
  2. A family member of a PEP, requiring enhanced due diligence
  3. A close associate of a PEP requiring standard monitoring procedures
  4. An international organization PEP subject to specialized compliance requirements
Show answer & explanation

Correct answer: B - A family member of a PEP, requiring enhanced due diligence

Question 3

A company with no employees, no physical office, and registration in a known secrecy jurisdiction applies to open an account. These characteristics are MOST consistent with:

  1. A startup company in its early stages
  2. A shell company used to conceal beneficial ownership
  3. A legitimate holding company structure
  4. A government-sponsored entity
Show answer & explanation

Correct answer: B - A shell company used to conceal beneficial ownership

Question 4

What is the PRIMARY difference between source of funds (SOF) and source of wealth (SOW)?

  1. SOF is for domestic transactions; SOW is for international transactions
  2. SOF tracks specific transaction funds; SOW tracks total accumulated wealth
  3. SOF applies to corporate clients; SOW applies to individual clients
  4. SOF is verified annually; SOW is verified at account opening
Show answer & explanation

Correct answer: B - SOF tracks specific transaction funds; SOW tracks total accumulated wealth

Question 5

A screening system produces a hit on a customer named 'Mohammed Al-Rahman' against a sanctioned person named 'Mohamed Al-Rehman.' Both share the same nationality. What should the analyst do NEXT?

  1. Automatically block the customer's account pending senior management review
  2. Gather and compare additional identifying data points to determine if this is a true match
  3. Dismiss the hit because the spelling differs and proceed with normal processing
  4. Ask the customer directly if they are the sanctioned person through official channels
Show answer & explanation

Correct answer: B - Gather and compare additional identifying data points to determine if this is a true match

Question 6

Individual X owns 80% of Company A. Company A owns 60% of Company B. Company B owns 50% of Company C. What is Individual X's indirect ownership of Company C?

  1. 24%
  2. 48%
  3. 80%
  4. 190%
Show answer & explanation

Correct answer: A - 24%

Question 7

A customer's bank account is held by a trust. The trust deed names three parties: a settlor, a corporate trustee, and five named beneficiaries. For UBO identification, how many parties need to be identified?

  1. Only the corporate trustee
  2. All seven parties
  3. Only the settlor and trustee
  4. Only the five beneficiaries
Show answer & explanation

Correct answer: B - All seven parties

Question 8

A foreign PEP's wealth declaration shows assets worth $20 million, but their government salary over 15 years would have totaled approximately $900,000 before tax. The PEP claims the additional wealth is from 'family investments.' The analyst should:

  1. Accept the claim since family investments can grow significantly
  2. Treat the wealth-salary gap as a red flag and request detailed investment documentation
  3. Calculate the potential return on $900,000 over 15 years
  4. Accept the claim if the PEP provides a self-declaration
Show answer & explanation

Correct answer: B - Treat the wealth-salary gap as a red flag and request detailed investment documentation

Question 9

After filing a SAR, the compliance team decides to exit the customer relationship. The customer asks why the account is being closed. What should the relationship manager say?

  1. We filed a SAR on your account due to compliance concerns
  2. We are unable to continue the relationship due to a business decision
  3. Your account has been flagged for suspicious activity by our systems
  4. We cannot support your banking needs based on regulatory requirements
Show answer & explanation

Correct answer: B - We are unable to continue the relationship due to a business decision

Question 10

A customer requests deletion of all their personal data under the GDPR right to erasure. The bank has an active SAR filed on this customer and is within the legal retention period. What should the bank do?

  1. Delete all data as requested by the customer
  2. Decline the erasure request using the legal obligation exemption
  3. Delete some data but retain records required by law
  4. Inform the customer about retention requirements then delete non-essential data
Show answer & explanation

Correct answer: B - Decline the erasure request using the legal obligation exemption

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