Question 1

What is AML?

Accepted Answer

Anti-Money Laundering (AML) refers to a set of actions aimed at preventing money laundering and terrorist financing by monitoring and controlling financial transactions and verifying the identities of clients.

Question 2

What is PEP?

Accepted Answer

A Politically Exposed Person (PEP) is an individual who holds a prominent public position or performs a significant role in government or administrative functions. Under anti-money laundering and counter-terrorist financing regulations, the transactions and relationships of PEPs are subject to enhanced scrutiny.
The definition of a PEP can vary by country and may include different categories of individuals depending on local laws and administrative structures.

Question 3

What is KYC?

Accepted Answer

Know Your Customer (KYC) is a process designed to verify the identities of clients.

The primary objective of KYC is to prevent money laundering and terrorist financing by collecting and validating personal information and identity documents.

This procedure involves identifying the customer, assessing their risk profile, and monitoring financial transactions to ensure they comply with legal and regulatory requirements.

Question 4

What is UBO?

Accepted Answer

Ultimate Beneficial Owner (UBO), or beneficial owner, is the individual who ultimately benefits from or controls a company or legal structure, deriving real financial benefits or exerting control over its operations.

Question 5

What is client due diligence (CDD)?

Accepted Answer

Client due diligence (CDD) is the process of assessing a client's identity and evaluating the risk associated with their activities, used to prevent money laundering and terrorist financing. CDD includes client identification, risk assessment, and transaction monitoring."

Question 6

What is Enhanced Due Diligence (EDD)?

Accepted Answer

Enhanced Due Diligence (EDD) is a comprehensive verification process applied in higher-risk scenarios, such as clients holding senior public positions or coming from high-risk countries. EDD involves more rigorous information verification, detailed risk analysis, and increased frequency of transaction monitoring.

Question 7

What is KYB or KY3P?

Accepted Answer

Know Your Business (KYB) is the process of verifying the identity and assessing the risk of business clients, including the examination of company ownership and structure.

Know Your Third Party (KY3P) is the process of evaluating the risk associated with external partners and suppliers, ensuring that they comply with regulations and do not pose a risk to the company.

Question 8

What is KYM?

Accepted Answer

Know Your Market (KYM) is a strategic process focused on analyzing and understanding the market landscape where a company operates. It involves collecting data on market trends, competitive dynamics, and regulatory factors that could affect the business. The objective of KYM is to enable the company to make informed strategic decisions, thereby reducing risks and enhancing growth opportunities.

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