Discuss Acams CKYCA Exam Topic 3 Question 1

In which circumstance must a KYC analyst obtain source of wealth information on a client subject to CDD?

AInformation on source of wealth for CDD clients must always be collected.

BThe client is establishing a business relationship with a private company whose benefit surpasses 10 million USD.

CThe client's senior manager is deemed to be an ultimate beneficial owner.

DThe number of business relationships involving high-risk third countries or politically exposed persons increases.

Suggested Answer: D

FATF requires obtaining and verifying source of wealth information in higher-risk situations, such as when there is increased involvement with high-risk jurisdictions or Politically Exposed Persons (PEPs), as part of enhanced due diligence.

Get Premium CKYCA Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test

30 comments · newest first

Cathrine 8 months ago

I feel like B is the safest choice. Big money, big questions.

Veronika 8 months ago

C is interesting too. If a senior manager is involved, we need clarity.

Teddy 8 months ago

I lean towards A. Always better to have source of wealth info.

Fairy 9 months ago

Option D is also important. More relationships with high-risk areas? Red flags!

Hayley 9 months ago

Agreed, B makes sense. Over 10 million USD? Definitely need to know more.

Alyce 9 months ago

I thought source of wealth was only for high-risk clients?

Meaghan 9 months ago

C) is definitely a must, can't overlook UBOs.

Rolf 9 months ago

I think B) makes sense, especially for large amounts.

Claudio 9 months ago

A) is correct, source of wealth info is always needed.

Leslie 10 months ago

I feel like option D could be relevant since it mentions high-risk countries, but I need to double-check the guidelines on that.

Nelida 10 months ago

I’m a bit confused about when exactly we need to gather this info. Is it only for certain thresholds or specific clients?

Sharee 10 months ago

I remember a practice question about high-value transactions, so I feel like option B might be the right choice here.

Samuel 10 months ago

I think source of wealth info is always required for high-risk clients, but I'm not sure if it applies to all CDD cases.

Antonio 10 months ago

Hmm, I'm torn between B and D. Guess I'll have to do some more studying before the exam.

Tamekia 11 months ago

I think option B is crucial. High amounts mean higher risk.

Anglea 11 months ago

D highlights a growing concern. We can't ignore high-risk connections.

Brock 11 months ago

Wait, D) seems a bit vague, how do we define "increases"?

An 11 months ago

A is the obvious choice here. Information on source of wealth for CDD clients must always be collected.

Tatum 11 months ago

Haha, I bet the exam writers were having a field day coming up with these options. Gotta love the financial regulations!

Kip 12 months ago

D seems like the right answer to me. The number of business relationships involving high-risk third countries or politically exposed persons increases.

Latrice 1 year ago

I think the correct answer is B. The client is establishing a business relationship with a private company whose benefit surpasses 10 million USD.

Hester 1 year ago

Ah, I think I've got it. Option B seems to be the only one that specifically mentions the need to collect source of wealth info for a high-value business relationship. The other options don't seem to directly require that.

Maile 1 year ago

I've got a good strategy for this. I'll carefully read through each option and think about the specific CDD requirements related to source of wealth. That should help me identify the right answer.

Lai 1 year ago

I'm a bit confused on this one. Do we need to collect source of wealth info for all CDD clients, or just in certain circumstances? I want to make sure I understand the requirements.

Linn 1 year ago

Okay, let me think this through. I believe the correct answer is B, since the client is establishing a high-value business relationship.

Wei 1 year ago

Hmm, this seems like a tricky one. I'll need to carefully review the key details about when source of wealth info is required for CDD.

Xochitl 7 months ago

↳ replying to Wei

True, but I still lean towards B for business relationships.

Allene 7 months ago

↳ replying to Wei

What about D? High-risk countries could be a factor too.

Ashanti 7 months ago

↳ replying to Wei

I agree, B makes sense for high-value clients.

Yasuko 10 months ago

↳ replying to Wei

I think it's B. Over 10 million USD is a big deal.

Acams CKYCA Exam - Topic 3 Question 1 Discussion