KYC Test Questions with All Solved
Solutions 2026-2027 Updated.
Abandonment - Answer When a NCA request is ceased prior to the Client being formally on
boarded.
acceptable documentation - Answer documentation that conforms to range of established
criteria including certification for certain documentations. acceptable documentation can be
used to identify and verify KYC information about the bank's Clients.
accumulation mythology approach - Answer The accumulation mythology approaches is used
to assess whether individuals within a clients ownership structure are UBOs. beneficial
ownership is reviewed on an aggregate basis taking into consideration the entire ownership of
the legal entity by a natural person on a direct and indirect basis. this ensures that any natural
person who did not qualify as a UBO initially is not overlooked when consideration is given to all
ownership holdings
Adverse information - Answer adverse information is negative information about a client or an
associate rule. The information may includeBut is not limited to information about sanctions
ML/TF .
AFC Approval (anti financial Crime) - Answer Documented agreement from local AFC to on
board or retain a client relationship which has been signed off by the business and COB but
which requires additional formal referral to local AFC due to specific MLFT risk factors being
identified.
AFC Business Partner - Answer A senior AFC management position representing a specific
business division.
AFC consultation - Answer COB may Consult with local AFC if they have specific questions. it is
separate to a formal escalation and can occur on a ad how basis.
AFC Escalation Form - Answer The AFC Escalation Form is a form which needs to be completed
where an escalation is submitted to Local AFC.
agent - Answer A Client is acting as an agent when it is transacting with DB for the benefits of
one or more UPs.
AML client risk classification - Answer The AML client risk classification is the score assigned to
every client by taking into account a variety of MLTF risk parameters , based on the total score
of the client it is assigned one of the following classifications: low risk, ned risk, high risk.
, Associated roles - Answer Associated rules are connected to the legal entity/person being on
boarded or undergoing review. Search parties will primarily be LR to the client and
shareholders, partners, and all types of corporate intermediate beneficial owners.
Bearer Shares - Answer ... are shares whichAre owned by the legal entity. Person who has
possession of the stock certificate number record of ownership is maintained by the issuing
company, as a result Bearer Shares Or a higher risk MLTF factor as they can be used to hide the
identity of the true owner of a legal entity.
Booking Centre - Answer The location of the DB legal entity into which the activity (or
transactions) have a new client relationship will be booked. KYC must be performed and held at
the booking centre. A client may have multiple booking centres.
Branch - Answer A branch (or sub-branch)is an office or division where a business is conducted
other than the legal entities main office(or country) . Branches are most commonly found in
banks.
Business and client outreach - Answer The Business and Client Outreach process followed by
COB to obtain any outstanding information from the business and or the client which is required
to complete the KYC process.
Business Approved Exit - Answer A client relationship which has been closed in accordance
with the exit protocol outlined in the exit protocol including inactive accounts chapter(28)
Business Restrictions - Answer Business restrictions are restrictions placed on a client
relationship which are the inability to trade specific products.
Client sign off - Answer approval from the business to adopt A new client and; or continue an
existing relationship.
Business Sponsor - Answer The person that has daily management responsibility over the
client relationship.
Business sponsorship fields (BSF) - Answer A form which forms part of the client KYC profile
and relates to provide specific data points relating to business sponsorship
certification authority - Answer An organization that issues official certification.
Solutions 2026-2027 Updated.
Abandonment - Answer When a NCA request is ceased prior to the Client being formally on
boarded.
acceptable documentation - Answer documentation that conforms to range of established
criteria including certification for certain documentations. acceptable documentation can be
used to identify and verify KYC information about the bank's Clients.
accumulation mythology approach - Answer The accumulation mythology approaches is used
to assess whether individuals within a clients ownership structure are UBOs. beneficial
ownership is reviewed on an aggregate basis taking into consideration the entire ownership of
the legal entity by a natural person on a direct and indirect basis. this ensures that any natural
person who did not qualify as a UBO initially is not overlooked when consideration is given to all
ownership holdings
Adverse information - Answer adverse information is negative information about a client or an
associate rule. The information may includeBut is not limited to information about sanctions
ML/TF .
AFC Approval (anti financial Crime) - Answer Documented agreement from local AFC to on
board or retain a client relationship which has been signed off by the business and COB but
which requires additional formal referral to local AFC due to specific MLFT risk factors being
identified.
AFC Business Partner - Answer A senior AFC management position representing a specific
business division.
AFC consultation - Answer COB may Consult with local AFC if they have specific questions. it is
separate to a formal escalation and can occur on a ad how basis.
AFC Escalation Form - Answer The AFC Escalation Form is a form which needs to be completed
where an escalation is submitted to Local AFC.
agent - Answer A Client is acting as an agent when it is transacting with DB for the benefits of
one or more UPs.
AML client risk classification - Answer The AML client risk classification is the score assigned to
every client by taking into account a variety of MLTF risk parameters , based on the total score
of the client it is assigned one of the following classifications: low risk, ned risk, high risk.
, Associated roles - Answer Associated rules are connected to the legal entity/person being on
boarded or undergoing review. Search parties will primarily be LR to the client and
shareholders, partners, and all types of corporate intermediate beneficial owners.
Bearer Shares - Answer ... are shares whichAre owned by the legal entity. Person who has
possession of the stock certificate number record of ownership is maintained by the issuing
company, as a result Bearer Shares Or a higher risk MLTF factor as they can be used to hide the
identity of the true owner of a legal entity.
Booking Centre - Answer The location of the DB legal entity into which the activity (or
transactions) have a new client relationship will be booked. KYC must be performed and held at
the booking centre. A client may have multiple booking centres.
Branch - Answer A branch (or sub-branch)is an office or division where a business is conducted
other than the legal entities main office(or country) . Branches are most commonly found in
banks.
Business and client outreach - Answer The Business and Client Outreach process followed by
COB to obtain any outstanding information from the business and or the client which is required
to complete the KYC process.
Business Approved Exit - Answer A client relationship which has been closed in accordance
with the exit protocol outlined in the exit protocol including inactive accounts chapter(28)
Business Restrictions - Answer Business restrictions are restrictions placed on a client
relationship which are the inability to trade specific products.
Client sign off - Answer approval from the business to adopt A new client and; or continue an
existing relationship.
Business Sponsor - Answer The person that has daily management responsibility over the
client relationship.
Business sponsorship fields (BSF) - Answer A form which forms part of the client KYC profile
and relates to provide specific data points relating to business sponsorship
certification authority - Answer An organization that issues official certification.
