KYC Masterclass

An AML monitoring system was materially changed halfway through the year. An audit sample covering the entire year found no significant exceptions.

What should the auditor do NEXT?

1 month ago | [YT] | 0

KYC Masterclass

During an AML audit, auditors identify several control deficiencies. Management has already implemented corrective actions, but there is no evidence showing that the changes are operating effectively.

What should the auditor do NEXT?

1 month ago | [YT] | 0

KYC Masterclass

An AML monitoring team notices that a customer segment has generated a 30% increase in transaction alerts over the past six months. The compliance officer asks the analytics team to determine whether this represents a genuine increase in money-laundering risk.

The analytics team reports:

Customer population increased by 25%
Total transaction volume increased by 40%
Alerts increased by 30%
Confirmed suspicious activity reports (SARs) increased by 5%
The alert-generation rule and threshold remained unchanged

What is the MOST appropriate conclusion?

1 month ago | [YT] | 0

KYC Masterclass

A financial institution identifies a corporate customer whose transactions are inconsistent with its stated business profile. The customer receives multiple incoming payments from unrelated third parties in different jurisdictions and subsequently transfers most of the funds to a newly established offshore company. The customer explains that the payments represent “consulting fees,” but provides limited supporting documentation.

What is the MOST appropriate next step for the AML compliance team?

1 month ago | [YT] | 1

KYC Masterclass

A multinational bank operates in 25 countries and offers retail banking, correspondent banking, trade finance, and private banking services. Following a regulatory examination, the bank was criticized for having inconsistent AML controls across jurisdictions, duplicate monitoring efforts, and gaps in beneficial ownership identification.

The Chief AFC Officer has been tasked with redesigning the global AFC program.

Which of the following should be the FIRST priority when redesigning the AFC program?

A. Implement a single transaction monitoring system across all jurisdictions to eliminate duplicate alerts.

B. Conduct an enterprise-wide AFC risk assessment to identify and prioritize inherent and residual risks across business lines, products, customers, and geographies.

C. Increase the number of investigators and analysts to address the backlog of alerts and regulatory findings.

D. Standardize customer due diligence procedures globally, regardless of local regulatory requirements.

5 months ago | [YT] | 5

KYC Masterclass

A compliance officer is reviewing country risk ratings for onboarding a correspondent banking relationship. One jurisdiction has a moderate Basel AML Index score overall, but shows the following profile:

High score (worse) in Corruption Risk and Public Transparency
Moderate score in Legal & Institutional AML framework
Low score (better) in International Cooperation and Financial Transparency
Recently removed from FATF increased monitoring (“grey list”)

Which of the following is the MOST accurate interpretation under Basel Institute on Governance methodology?

A. The jurisdiction is low-risk because FATF removal overrides Basel Index indicators
B. The jurisdiction presents mixed AML risk, with governance weaknesses potentially increasing residual risk despite technical AML improvements
C. The jurisdiction is high-risk primarily due to deficiencies in technical AML laws
D. The Basel Index is not applicable for correspondent banking risk assessment

5 months ago | [YT] | 4

KYC Masterclass

Which of the following best represents the three core analytical frameworks associated with the Tax Justice Network’s research outputs?

A. FATF Grey List, OECD Black List, EU Tax List
B. AML Risk List, Terror Financing List, Sanctions List
C. Financial Secrecy Index, Corporate Tax Haven Index, Illicit Financial Flows/opacity risk metrics
D. Basel AML Index, Transparency Index, Corruption Index

5 months ago | [YT] | 5

KYC Masterclass

The video for Day 12 is set to be released tonight. Stay tuned 🎥

5 months ago | [YT] | 5

KYC Masterclass

It’s been a while since I posted here — the last couple of months have been extremely busy personally and professionally.

Before my official travel across India and Latin America started, I completed and successfully passed the CAMS certification exam — something I had been working towards for quite some time.

Following that, most of my time went into international travel, professional commitments, and a few important transitions, which is why the channel was inactive recently.

Now, I’m back and will be focusing on completing the KYC Masterclass series and continuing to create practical, industry-focused AML/KYC/compliance content that can genuinely help professionals grow in this domain.

More videos, discussions, and insights are coming soon.

Thank you for staying connected and supporting the channel throughout this phase. Looking forward to reconnecting with all of you 🙌🏻

5 months ago | [YT] | 9

KYC Masterclass

A compliance officer is assessing money laundering risks in different industries. Which of the following scenarios presents the highest risk of value manipulation to disguise illicit funds through the sale of goods?

A. A contractor inflates invoices for infrastructure projects
B. A property is sold above market value between related parties
C. A rare painting is sold through a private dealer with no transparent pricing benchmark
D. A company purchases high-end software licenses in bulk

7 months ago | [YT] | 4