1. Tell me about yourself.

Hello ma’am, I am Aditya Garg. I have a bachelor’s degree in economics. I have a strong interest in data
analysis. I have experience working on projects that involved data analysis and visualization using tools
like Python and Tableau.

2. Why do you want to work as an AML KYC Analyst?

I’m passionate about protecting the financial system from fraud. This role lets me apply my analytical
skills while contributing to compliance and risk prevention.

3. What is KYC, and why is it important in the financial industry?

KYC (Know Your Customer) is the process of verifying the identity of customers to assess their risk
profile. It helps financial institutions prevent money laundering, fraud, and other illicit activities while
ensuring regulatory compliance.

4. What is AML and what are the key components of AML compliance?

AML (Anti-Money Laundering) is a system of rules and practices to stop criminals from hiding illegal
money and making it look legal. It involves:
Key components include:

 Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD)

 Customer Due Diligence (CDD) is the basic process of verifying a customer’s

identity and assessing their risk level to ensure they’re not involved in illegal
activities.
 Enhanced Due Diligence (EDD) is a more detailed investigation for high-risk
customers, involving additional checks like verifying the source of funds and closely
monitoring their transactions.

 Transaction monitoring
 Suspicious Activity Reporting (SAR)
 Adherence to regulatory frameworks like FATF and local laws

5. What is the difference between customer identification and customer due diligence?
Customer identification involves verifying the identity of a customer using official documents. Customer
due diligence goes further, assessing the customer’s risk profile, business activities, and transaction
patterns.

6. What are PEPs (Politically Exposed Persons), and why are they important in AML checks?
PEPs are individuals with prominent political roles or connections. They pose a higher risk due to their
potential exposure to corruption, requiring enhanced due diligence.
7. What do you know about SARs (Suspicious Activity Reports)?
SARs are reports filed by financial institutions to regulatory authorities when they detect suspicious or
potentially illegal activities involving customer transactions.

8. How would you handle a case where you suspect a customer is involved in suspicious activity?
I would follow the organization’s protocols, document the activity in detail, gather evidence, and
escalate the case to the relevant compliance team or file an SAR if required.

9. If you find conflicting information during a KYC review, how would you proceed?
I would cross-check the information against reliable sources, consult my team or supervisor, and
document any discrepancies to ensure an accurate risk assessment.

10. What steps would you take to verify the identity of a high-risk customer?

 Obtain official identification documents.

 Conduct enhanced due diligence, such as verifying the source of funds.
 Cross-reference information with global sanctions and PEP lists.

11. What tools or software are commonly used in AML/KYC operations? Are you familiar with any?
Common tools include transaction monitoring systems, database tools, and Excel. While I am new to
AML/KYC-specific tools, I am skilled in using analytical tools like Python, Tableau, and SQL.

12. Have you worked with any data analysis tools or methods? How would you use them in this role?
Yes, I have experience with Python and Tableau. These tools can be used to analyze transaction data,
identify patterns, and create dashboards for tracking compliance metrics.

13. Describe a time when you had to learn a new skill quickly. How did you handle it?
In one of my projects, I had to learn Tableau quickly to create a dashboard. I utilized online tutorials,
experimented with the tool, and successfully delivered an interactive dashboard within the timeline.

14. What do you know about FATF (Financial Action Task Force)?
FATF is an intergovernmental body that develops policies to combat money laundering, terrorist
financing, and other financial crimes globally.

15. How does GDPR (General Data Protection Regulation) impact KYC and AML processes?
GDPR requires that customer data used in KYC processes is handled securely, with consent, and only
for legitimate purposes, balancing AML requirements with privacy.
Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) are key processes in the financial
industry for managing customer risk and complying with AML (Anti-Money Laundering) regulations. Here's a
detailed explanation of both:

Customer Due Diligence (CDD)

Definition:
CDD is the process of collecting and verifying information about a customer to assess their risk level and ensure
compliance with regulatory requirements.

Key Components of CDD:

1. Customer Identification: Verifying the customer’s identity using official documents like passports,
IDs, or business registrations.
2. Risk Assessment: Classifying customers as low, medium, or high-risk based on factors like their
location, nature of the business, and transaction behavior.
3. Ongoing Monitoring: Continuously monitoring customer transactions to identify unusual or suspicious
activities.

Purpose:

 Prevent financial crimes such as money laundering, terrorist financing, and fraud.
 Ensure compliance with regulations like FATF guidelines, the USA PATRIOT Act, and other AML
laws.

When CDD is Applied:

 Onboarding a new customer.

 When there is a significant transaction or change in account activity.
 Periodically, based on the customer’s risk level.

Enhanced Due Diligence (EDD)

Definition:
EDD is a more detailed investigation required for customers or situations deemed high-risk. It involves
collecting additional information and applying stricter monitoring procedures.

Key Components of EDD:

1. Detailed Identity Verification: Gathering more documents, such as proof of income, source of funds,
or business ownership details.
2. PEP and Sanction Screening: Verifying whether the customer is a Politically Exposed Person (PEP) or
appears on global sanctions lists.
3. Transaction Analysis: Closely scrutinizing transaction patterns for high-value or cross-border
activities.
4. Site Visits or Interviews: In some cases, conducting physical visits to verify a customer's business
operations.

Purpose:
  To mitigate the higher risks associated with certain customers, industries, or regions.
 To ensure that high-risk customers are not engaging in illicit activities.

When EDD is Applied:

 For high-risk customers, such as Politically Exposed Persons (PEPs).

 When dealing with customers in high-risk industries or jurisdictions.
 If suspicious activities are detected during CDD.

Key Differences Between CDD and EDD:

Aspect Customer Due Diligence (CDD) Enhanced Due Diligence (EDD)

Risk Level Low to medium-risk customers. High-risk customers or transactions.
Information Basic identity and financial Detailed information, including source of funds and
Collected details. business details.
Monitoring Standard transaction monitoring. Enhanced and more frequent monitoring.
Retail customers with regular PEPs, customers from high-risk countries, or large
Examples
transactions. cash transactions.

By conducting both CDD and EDD, financial institutions can effectively manage customer risks, comply with
regulations, and maintain the integrity of the financial system.