Home › Career Guide › KYC Analyst Interview Questions

KYC Analyst Interview Questions (2025) — With Simple, Clear Answers

Preparing for a KYC Analyst interview? This guide lists the most common and realistic questions asked by banks, fintech companies, and compliance teams worldwide — along with clear, beginner-friendly answers.

These questions are based on actual interview patterns for KYC roles in 2025, including onboarding, CDD/EDD, screening, and risk assessment.

Basic-Level KYC Analyst Interview Questions

1. What is KYC?

KYC (Know Your Customer) is the process of verifying the identity of a customer to ensure they are not involved in financial crime, fraud, or money laundering.

2. What documents are used for KYC verification?

Typically: government ID, proof of address, and in some cases, source-of-funds or employment documents.

3. What is CDD?

CDD (Customer Due Diligence) is the basic KYC process involving identity verification, risk assessment, and screening for sanctions/PEP/adverse media.

4. What is EDD?

EDD (Enhanced Due Diligence) is a deeper investigation performed for high-risk customers, involving additional documents and enhanced checks.

5. What is a PEP?

A PEP (Politically Exposed Person) is someone holding a public position or related to one — requiring stricter EDD checks.

Screening & Risk Assessment Interview Questions

6. What is sanctions screening?

It checks customer names against global lists (OFAC, EU, UN, OFSI) to ensure the institution doesn’t do business with restricted persons/entities.

7. What is a false positive?

A screening alert that looks like a match but is actually not the same person/entity.

8. What is a true match?

A confirmed match between the customer and a sanctioned/PEP/flagged individual requiring escalation.

9. What is risk rating?

Assigning low/medium/high risk rating to a customer based on profile, geography, transactions, and red flags.

10. Name three high-risk indicators.

High-risk country connections, complex ownership structures, and adverse media involving crime.

Real-World KYC Case-Based Questions

11. A customer refuses to provide source-of-funds. What do you do?

You escalate. Refusing mandatory documentation is a major red flag and onboarding cannot proceed.

12. You find adverse media linking a customer to fraud. Next step?

Document findings → escalate to AML/senior compliance → do not clear the customer without review.

13. Customer's name partially matches a sanctioned individual. What do you check?

• Date of birth
• Nationality
• Aliases
• Address
• Additional identifiers

Advanced-Level Questions (for Experienced Candidates)

14. How do you handle complex ownership structures?

Identify UBOs, verify shareholders, analyze offshore links, and assess risk based on transparency.

15. What triggers EDD?

• PEPs
• High-risk countries
• Adverse media
• Complex structures
• Large unexplained funds
• Sanctions links