CKYCA Exam Guide, Objectives & Preparation

Exam Overview

Exam Code	CKYCA
Exam Name	Certified Know Your Customer Associate
Vendor	Acams
Total Questions	74
Last Updated	26-Oct, 2026

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Free CKYCA Practice Questions

Explore 7 free practice questions for the Acams CKYCA exam and review the answers and explanations to support your preparation.

Question 1
Single answer

A politically exposed person (PEP) is eager to open a private account with an international bank. In addition to performing the normal CDD, which measure should be required from the AML officer?
- Option A:
  Conduct enhanced ongoing monitoring of the business relationship each quarter.
  Correct
- Option B:
  Obtain senior management approval for establishing such business relationships.
  Correct
- Option C:
  Contact law enforcement, as PEPs pose enhanced risks to an institution.
  Correct
- Option D:
  Make a note of a PEP business relationship and file a suspicious transaction report to the local financial intelligence unit.
  Correct
Show Answer & Explanation Hide Answer & Explanation

Correct Answer: B

Explanation

FATF requires that before establishing a business relationship with a PEP, financial institutions must obtain senior management approval, along with applying enhanced due diligence measures such as verifying the source of wealth and funds.
Question 2
Single answer

A KYC analyst is onboarding a high-net-worth client and, during the screening process, notices that the prospective client is the parent of a government minister. After the analyst performs a source of wealth analysis, whose approval is needed before opening the account?
- Option A:
  Relationship management
  Correct
- Option B:
  Senior management
  Correct
- Option C:
  Team management
  Correct
- Option D:
  Project management
  Correct
Show Answer & Explanation Hide Answer & Explanation

Correct Answer: B

Explanation

FATF requires that the decision to establish or continue a business relationship with a Politically Exposed Person (PEP), or their close family members, must be approved by senior management after appropriate enhanced due diligence has been completed.
Question 3
Single answer

During a routine CDD update in a financial institution, a junior member of the compliance department identifies that the spouse of the reviewed client was elected as a member of government. Which action should the junior member take?
- Option A:
  Inform the relationship manager about the election of the client's spouse.
  Correct
- Option B:
  Make a note on the client's account of this fact and continue operations as usual.
  Correct
- Option C:
  File a suspicious transaction report because the client did not notify the financial institution.
  Correct
- Option D:
  Update the client's information to reflect that the client is related to a politically exposed person.
  Correct
Show Answer & Explanation Hide Answer & Explanation

Correct Answer: D

Explanation

FATF guidelines require enhanced due diligence when a client becomes a Politically Exposed Person (PEP) or is related to one. Since the client’s spouse is now a government member, the client must be classified as related to a PEP, and the institution’s records must be updated accordingly.
Question 4
Single answer

An Iranian customer is incorrectly recorded in the system as being from Ireland. As a result of this error, the customer will be:
- Option A:
  assigned fewer risk points.
  Correct
- Option B:
  prohibited from funding a new account.
  Correct
- Option C:
  disallowed from opening new accounts.
  Correct
- Option D:
  not screened against applicable sanctions lists.
  Correct
Show Answer & Explanation Hide Answer & Explanation

Correct Answer: A

Explanation

Misrecording the customer’s country as a low-risk jurisdiction like Ireland instead of a high-risk sanctioned jurisdiction like Iran would result in the system assigning fewer risk points, underestimating the customer’s true risk level.
Question 5
Single answer

A KYC analyst notices frequent use of letters of credit as a method of trade finance. It further appears that trades covered by letters of credit are not consistent with the customer’s usual business. What should be the next action taken by the KYC analyst?
- Option A:
  Notify the Board of Directors and obtain the Board's approval for filing a STR.
  Correct
- Option B:
  Refer internally for a potential suspicious transaction report
  Correct
- Option C:
  Establish internally the existence of a criminal violation.
  Correct
- Option D:
  Prepare to close the customer’s account.
  Correct
Show Answer & Explanation Hide Answer & Explanation

Correct Answer: B

Explanation

Unusual trade finance activity, such as letters of credit inconsistent with the customer’s normal business, is a potential red flag for trade-based money laundering. The appropriate step is to make an internal referral for review and possible filing of a suspicious transaction report (STR).
Question 6
Single answer

Which is the best technique to effectively document a customer profile?
- Option A:
  Have the profile start with a picture of the customer followed by key numbers, such as expected turnover.
  Correct
- Option B:
  Record customer information using abbreviations, explain adjectives, and provide a narrative to follow.
  Correct
- Option C:
  Document customer information in a standardized way that is defined by the customer's jurisdiction
  Correct
- Option D:
  Avoid adjectives and exaggerations, put the information into context, and be precise and unambiguous
  Correct
Show Answer & Explanation Hide Answer & Explanation

Correct Answer: D

Explanation

Effective customer profile documentation should be clear, precise, and free from subjective language. Providing context and avoiding ambiguity ensures the information is reliable, verifiable, and usable for risk assessment and compliance purposes.
Question 7
Single answer

Which action should be considered a possible red flag, indicating to a bank that the activity might warrant further investigation?
- Option A:
  Making multiple cash deposits just under the reporting threshold
  Correct
- Option B:
  Adding a new beneficial owner after the establishment of the business relationship
  Correct
- Option C:
  Opening a new account without a local telephone number or utility bill
  Correct
- Option D:
  Sending large amounts of money to family in their home country with known sources of income
  Correct
Show Answer & Explanation Hide Answer & Explanation

Correct Answer: A

Explanation

Structuring transactions by making multiple cash deposits just under the reporting threshold is a common method to evade detection and reporting requirements, making it a strong red flag for potential money laundering.

Free CKYCA Practice Questions

Question 1

A politically exposed person (PEP) is eager to open a private account with an international bank. In addition to performing the normal CDD, which measure should be required from the AML officer?

Conduct enhanced ongoing monitoring of the business relationship each quarter.

Obtain senior management approval for establishing such business relationships.

Contact law enforcement, as PEPs pose enhanced risks to an institution.

Make a note of a PEP business relationship and file a suspicious transaction report to the local financial intelligence unit.

FATF requires that before establishing a business relationship with a PEP, financial institutions must obtain senior management approval, along with applying enhanced due diligence measures such as verifying the source of wealth and funds.

Question 2

A KYC analyst is onboarding a high-net-worth client and, during the screening process, notices that the prospective client is the parent of a government minister. After the analyst performs a source of wealth analysis, whose approval is needed before opening the account?

Relationship management

Senior management

Team management

Project management

FATF requires that the decision to establish or continue a business relationship with a Politically Exposed Person (PEP), or their close family members, must be approved by senior management after appropriate enhanced due diligence has been completed.

Question 3

During a routine CDD update in a financial institution, a junior member of the compliance department identifies that the spouse of the reviewed client was elected as a member of government. Which action should the junior member take?

Inform the relationship manager about the election of the client's spouse.

Make a note on the client's account of this fact and continue operations as usual.

File a suspicious transaction report because the client did not notify the financial institution.

Update the client's information to reflect that the client is related to a politically exposed person.

FATF guidelines require enhanced due diligence when a client becomes a Politically Exposed Person (PEP) or is related to one. Since the client’s spouse is now a government member, the client must be classified as related to a PEP, and the institution’s records must be updated accordingly.

Question 4

An Iranian customer is incorrectly recorded in the system as being from Ireland. As a result of this error, the customer will be:

assigned fewer risk points.

prohibited from funding a new account.

disallowed from opening new accounts.

not screened against applicable sanctions lists.

Misrecording the customer’s country as a low-risk jurisdiction like Ireland instead of a high-risk sanctioned jurisdiction like Iran would result in the system assigning fewer risk points, underestimating the customer’s true risk level.

Question 5

A KYC analyst notices frequent use of letters of credit as a method of trade finance. It further appears that trades covered by letters of credit are not consistent with the customer’s usual business. What should be the next action taken by the KYC analyst?

Notify the Board of Directors and obtain the Board's approval for filing a STR.

Refer internally for a potential suspicious transaction report

Establish internally the existence of a criminal violation.

Prepare to close the customer’s account.

Unusual trade finance activity, such as letters of credit inconsistent with the customer’s normal business, is a potential red flag for trade-based money laundering. The appropriate step is to make an internal referral for review and possible filing of a suspicious transaction report (STR).

Question 6

Which is the best technique to effectively document a customer profile?

Have the profile start with a picture of the customer followed by key numbers, such as expected turnover.

Record customer information using abbreviations, explain adjectives, and provide a narrative to follow.

Document customer information in a standardized way that is defined by the customer's jurisdiction

Avoid adjectives and exaggerations, put the information into context, and be precise and unambiguous

Effective customer profile documentation should be clear, precise, and free from subjective language. Providing context and avoiding ambiguity ensures the information is reliable, verifiable, and usable for risk assessment and compliance purposes.

Question 7

Which action should be considered a possible red flag, indicating to a bank that the activity might warrant further investigation?

Making multiple cash deposits just under the reporting threshold

Adding a new beneficial owner after the establishment of the business relationship

Opening a new account without a local telephone number or utility bill

Sending large amounts of money to family in their home country with known sources of income

Structuring transactions by making multiple cash deposits just under the reporting threshold is a common method to evade detection and reporting requirements, making it a strong red flag for potential money laundering.