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Top KYC Interview Questions & Answers (2025 Updated)

Preparing for a KYC or AML job interview? Here are the most commonly asked KYC interview questions with simple, clear answers — perfect for beginners, analysts, and job seekers preparing for roles in 2025.

This guide includes real-world questions asked in top banks, fintechs, and compliance teams worldwide.

1. Basic KYC Interview Questions

Q1. What is KYC?

KYC (Know Your Customer) is the process of identifying and verifying a customer’s identity before providing financial services. It helps prevent fraud, money laundering, and illegal activities.

Q2. What is CDD?

Customer Due Diligence (CDD) includes understanding the customer, verifying documents, assessing risk, and monitoring activity.

Q3. What is the difference between KYC and AML?

KYC is part of AML. AML is the larger framework to prevent financial crime; KYC focuses on customer identity and risk rating.

2. Document Verification Questions

Q4. What are acceptable KYC documents?

Passport, government ID, driving licence, utility bill, bank statement, tax document depending on the country.

Q5. How do you verify address?

Through proof of address documents (POA) such as utility bill, rental agreement, bank statement, etc., ensuring they are recent and valid.

3. Risk & Red Flags Questions

Q6. What is a PEP?

A Politically Exposed Person (PEP) is someone in a high-influence public role. They require Enhanced Due Diligence (EDD).

Q7. Name common KYC red flags.

• Unusual large transactions
• Address mismatch
• Multiple identities
• Frequent cash deposits
• High-risk jurisdictions
• Negative news

4. EDD & High-Risk Customer Questions

Q8. When is EDD required?

For PEPs, high-risk industries, adverse media, complex structures, offshore entities, high-value transactions, and high-risk countries.

Q9. What documents are needed for EDD?

• Source of funds (SoF)
• Source of wealth (SoW)
• Business documents
• Ownership structure charts
• Tax returns
• Bank statements

5. Sanctions & Screening Questions

Q10. What is sanctions screening?

Checking customers against global sanctions lists (UN, OFAC, EU, UK) to ensure they’re not prohibited individuals or entities.

Q11. What is adverse media screening?

Searching for negative news related to crime, fraud, corruption, or legal issues linked to the customer.

6. Scenario-Based Questions (Most Common)

Q12. What will you do if a customer's address and ID do not match?

Request additional documents, ask for updated proof, verify via alternative documents, and escalate if inconsistent.

Q13. A customer refuses to provide SoF. What will you do?

Escalate to compliance, mark as high-risk, and decline onboarding if refusal continues.

7. KYC Job Role & Knowledge Questions

Q14. What is your understanding of the KYC Analyst role?

Document review, verification, risk assessment, screening, and ensuring onboarding aligns with regulations.

Q15. Why should we hire you for a KYC role?

Emphasize accuracy, attention to detail, analytical mindset, regulatory awareness, and willingness to learn.