Mohammed Favas K.t

AML/KYC/Fraud Investigation Interview Questions & Answers Are you preparing for an AML, KYC, or Fraud Investigation interview? Here are some key questions and answers to help you succeed: 1. What’s the difference between AML and KYC? Answer: AML (Anti-Money Laundering) refers to laws and measures designed to prevent money laundering. KYC (Know Your Customer) is a crucial component of AML, focusing on verifying customer identities and assessing risk. While KYC is primarily a preventive measure, AML covers both prevention and investigation of financial crimes. 2. What are the key red flags for money laundering? Answer: • Large cash deposits that don’t align with the customer’s profile. • Transactions structured to remain below reporting thresholds. • Fund transfers to high-risk jurisdictions. • Rapid movement of funds between multiple accounts (layering). • Shell companies with unclear ownership structures. 3. What is Enhanced Due Diligence (EDD), and when is it required? Answer: EDD is an in-depth verification process applied to high-risk individuals or entities, such as politically exposed persons (PEPs) or high-net-worth clients. It involves additional checks, verification of the source of wealth, and continuous monitoring. EDD is required when a customer presents an increased risk of financial crime. 4. How do you investigate a potentially fraudulent transaction? Answer: 1. Analyze transaction details for inconsistencies. 2. Review the customer’s profile and transaction history. 3. Identify red flags such as unusual or high-risk transfers. 4. Utilize fraud detection tools and sanctions screening. 5. Escalate or file a Suspicious Activity Report (SAR) if necessary. 6. Document findings and suggest appropriate actions. 5. What is a Politically Exposed Person (PEP), and why is it considered a risk? Answer: A PEP is an individual holding a high-level public position or someone closely associated with government officials. Due to their influence, PEPs pose a higher risk for corruption and money laundering. Financial institutions conduct Enhanced Due Diligence (EDD) to mitigate these risks. Stay tuned for more insights follow for updates!

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AML/CFT Compliance Culture is not just a legal requirement under UAE AML Laws, but it acts as the strongest weapon as well as protective shield against ML/FT/PF. AML UAE‘s latest eBook contains a detailed exploration of various aspects of AML/CFT Compliance Culture, such as: 🔺Components of AML/CFT Compliance Culture 🔺Importance of AML/CFT Compliance Culture 🔺Role of AML/CFT Compliance Culture 🔺Building a strong AML/CFT Compliance Culture 🔺Challenges in establishing AML/CFT Compliance Culture 🔺The future of AML/CFT Compliance Culture in combating ML/FT Visit the eBook today to learn more! 🌍 https://lnkd.in/drQEUSxz #AMLUAE #AMLCFT #ComplianceCulture #AMLLaws #ProliferationFinancing #AMLCompliance #AMLPolicies

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🛡️ AML & KYC: 20 Questions Every Compliance Pro Should Nail From first-day basics to advanced compliance know-how, here’s your rapid-fire guide to the essentials. 1. What does AML stand for? Anti-Money Laundering—laws and procedures to stop illicit funds from entering the financial system. 2. What does KYC mean? Know Your Customer—verifying who a customer is and their risk profile. 3. Why is KYC important? It blocks fraud, money laundering, and terrorist financing. 4. What is CDD? Customer Due Diligence – collecting and verifying customer data to assess risk. 5. What is EDD? Enhanced Due Diligence—deeper checks for high-risk cases. 6. When is EDD needed? For PEPs, high-risk countries, or unusual transactions. 7. Who is a PEP? Politically Exposed Person—someone with a high public role and greater corruption risk. 8. What is transaction monitoring? Tracking transactions to spot suspicious patterns. 9. What is a red flag in AML? An activity that’s unusual, inconsistent, or suspicious. 10. What is SAR? Suspicious Activity Report – alerting regulators to possible financial crime. 11. Who gets SARS in the US? FinCEN—the Financial Crimes Enforcement Network. 12. What is the “Travel Rule”? Requires payment info to accompany cross-border wires. 13. What is sanctions screening? Checking customers against prohibited lists. 14. Name a sanctions authority. OFAC – Office of Foreign Assets Control. 15. What is beneficial ownership? The real person who controls or owns a company. 16. Why identify beneficial owners? To stop criminals from hiding behind shell firms. 17. What is FATF? Financial Action Task Force—sets global AML/CFT standards. 18. What is layering in money laundering? Hiding illicit origins through complex transactions. 19. What is CFT? Counter-Financing of Terrorism—stopping terrorist funding. 20. Why is ongoing KYC important? Risks change; monitoring keeps defenses sharp. #AML #KYC #Compliance #FinancialCrime #DueDiligence #EDD #CDD #TransactionMonitoring #Sanctions #PEP #BeneficialOwnership #SAR #FATF #TravelRule #CFT #ComplianceTraining #RiskManagement #RegTech #AMLTraining #KYCCertification

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🚨 ACAMS / CAMS AML 30 Must-Knows for Interviews 🔥 🔍 Format: Question + Sample Answer (Simplified + Professional) 1. What are the 3 stages of money laundering? Answer: Placement – Introducing illicit money into the financial system. Layering – Concealing the source through complex transactions. Integration – Reintroducing it as apparently legitimate funds. 2. What is the difference between Money Laundering and Terrorist Financing? Answer: Money laundering hides the source of illegal funds, while terrorist financing may involve legal or illegal money used to fund illegal acts. 3. What is CDD and why is it important? Answer: Customer Due Diligence (CDD) is the process of verifying a customer's identity and assessing risk. It's vital for detecting suspicious behavior early. 4. What is Enhanced Due Diligence (EDD)? Answer: EDD is in-depth verification for high-risk customers like PEPs. It includes source of funds and continuous monitoring. 5. What is a Politically Exposed Person (PEP)? Answer: A PEP is someone with a prominent public function (e.g., ministers, judges), posing a higher risk of bribery or corruption. 6. What is a Suspicious Activity Report (SAR)? Answer: A SAR is filed when suspicious transactions are detected. It helps law enforcement investigate possible money laundering or fraud. 7. Name 3 red flags of suspicious transactions. Answer: Large cash deposits. Unusual wire activity. Frequent transfers to high-risk countries. 8. What is the role of FATF? Answer: FATF (Financial Action Task Force) sets international standards to combat money laundering and terrorist financing. 9. What are the 5 pillars of an AML compliance program? Answer: Internal controls Independent testing A designated compliance officer Ongoing training CDD procedures 10. What is the Risk-Based Approach (RBA)? Answer: RBA means allocating resources to higher-risk areas/customers for better AML effectiveness. 11. What are sanctions, and why do they matter in AML? Answer: Sanctions are restrictions against individuals or entities (e.g., OFAC list) to prevent money flow to criminals/terrorists. 12. What is transaction monitoring? 13. How is KYC different from CDD? 14. What is correspondent banking risk? 15. How do shell companies help in laundering? 16. What is the Wolfsberg Group? 17. What is structuring (smurfing)? 18. What is Ultimate Beneficial Ownership (UBO)? 19. How often should AML training be conducted? 20. What is a trigger event for periodic reviews? 21. What is de-risking, and why is it controversial? 22. What does “Know Your Customer’s Customer” (KYCC) mean? 23. What is adverse media screening? 24. What is trade-based money laundering (TBML)? 25. What’s the importance of source of funds (SoF) and source of wealth (SoW)? 26. What is MLRO? 27. What is CTR and what’s the threshold? 28. What is layering in money laundering? 29. Give one example of using crypto for laundering. 30. Why is ongoing customer monitoring important?

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🤷🏼‍♀️🤔 AML: Independent Review - What's Independent? Do you really want a strange, unfamiliar independent reviewer when you know your AML/ CTF program better than anyone else? An independent review of your AML/CTF program should be considered an opportunity for improvement. Like all good independent audits, it cannot be undertaken by those who have a hand in running or changing the day-to-day operation of what is being reviewed. Within the AML/ CTF requirements in Australia 🇦🇺, AML/ CTF reporting entities are required to undertake an independent review. How often and how this happens is dependent upon the business and possibly what happens to the business. In short, the review should: 💡 See that your AML/ CTF program is fit for purpose (aligned to risks and obligations) - “say what you do” 💡 That the AML/ CTF program is working as expected - “do what you say” Who can perform this? Someone independent!: 💡 This doesn’t have to be an external person/ body 💡 They need to be able to understand your business 💡 They need to be able to understand ML/ TF risk and how they may apply this to your business 💡 That they are not involved in operating, maintaining, changing or implementing your AML/ CTF program 💡 That they have not been involved in assessing your ML/ TF risk Do they need to be an AML/ CTF expert? If you’re using a third party to perform this, then yes! They should take time to understand your business and the ML/ TF risks that you face. What about if you are using an internal resource? Provided they can meet the above criterion, a suitable internal resource can undertake this work. I’ve observed examples of external and internal reviews rotated between each year. Can you DIY it? Comment below 👇🏻👇🏻 🇦🇺 Australian 2025/6 AML/ CTF Reforms coming your way - I can help. #aml #financialcrime #amlcft #independentreview

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🔍 AML & KYC PROCESS: A STEP-BY-STEP GUIDE FOR COMPLIANCE TEAMS In banking, fintech, or RegTech — getting AML/KYC right isn’t optional. It’s the foundation of financial integrity, fraud prevention, and regulatory trust. Here’s how top compliance teams actually break it down in practice 👇 ⸻ ✅ 1. Customer Identification Program (CIP) 🎯 Goal: Verify customer identity at onboarding • Collect core info: Name, DOB, Address, Govt ID (PAN, Passport, NID) • Match with official documents & databases • Use biometric/e-KYC tools where possible • Assign a risk level: Low / Medium / High ⸻ 🧠 2. Customer Due Diligence (CDD) 🎯 Goal: Understand the customer’s background & risk profile • Basic CDD → Low-risk, everyday customers • Enhanced Due Diligence (EDD) → PEPs, HNIs, risky jurisdictions • Ongoing CDD → Monitor transactions over time ⸻ 🧾 3. Beneficial Ownership Checks 🎯 Goal: See who really controls the entity • Map ownership structure for companies/trusts • Identify any person with >15–25% stake • Apply EDD if beneficial owners are high risk ⸻ 🚨 4. Screening & Monitoring 🎯 Goal: Detect suspicious patterns before they escalate • Screen names: OFAC, UN, EU, FATF lists • Flag PEPs & negative media hits • Use real-time or batch TMS (Transaction Monitoring Systems) • File SARs/STRs promptly with FIUs when red flags arise ⸻ 🗂️ 5. Record Keeping & Reporting 🎯 Goal: Stay audit-ready & compliant • Store KYC + transaction data for 5–10 years (as per regulations) • Submit regulatory reports: STR, CTR, FIU filings • Maintain strong data protection protocols ⸻ 🔄 6. Ongoing Monitoring & Refresh 🎯 Goal: Keep KYC updated & risks current • Refresh KYC based on risk category (annual for high-risk) • Re-verify IDs, source of funds, and business purpose • Investigate any suspicious account behavior ⸻ 💡 Why it matters: KYC isn’t just “ticking boxes.” ✅ It’s your first line of defense against: • 🏦 Money laundering • 🚨 Fraud & terrorism financing • 💰 Regulatory fines & reputational risk ⸻ 🛠️ For startups, banks, or compliance teams — I can help design scalable AML/KYC frameworks, optimize workflows, and strengthen risk controls. #AML #KYC #Compliance #FinCrime #TransactionMonitoring #RegTech #BankingCareers #FinancialCrime #CDD #EDD #SAR #RiskManagement

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