KYC AML PART-1

Question 1
There is a need for preventing terrorists and other criminals from having unfettered access to wire
transfers. Why?
A) Wire transfer is a rapid and secure method for transferring value from one location to another.
B) Wire transfers, do not involve actual movement of currency.
C) Wire transfer is an instantaneous mode for transfer of funds from one location to another.
D) All of the above options are correct.

Question 2
What is the purpose of using Money Mules in the process of Money Laundering?
A) When caught the money mules are liable to face likely legal action for being part of a fraud/
offence of money laundering, instead of the real culprits/ money launderers.
B) Money mules are invariable needed to complete the process of money laundering.
C) Money mules are inseparable from the process of money laundering.
D) Money mules are trained to avoid action against them under PML Act-2002.

Question 3
Which of the following is included in the category of Designated Non-Financial Businesses &
Professions (DNFBPs)?
A) Insurance Companies
B) Dealer in precious stones
C) Banks
D) Small Finance Banks

Question 4
Why accounts of NGOs & NPOS are classified in 'High Risk' category?
A) Accounts of NGOs/ NPOS are considered more vulnerable and prone to money laundering and
terror financing.
B) Accounts of NGOs/NPOS are considered to be controlled and operated by imaginary persons.
C) Accounts of NGOs/NPOS are considered as Shell entities.
D) None of the options is correct.

Question 5
Each Business Group/Circle/SBU designates an official to ensures proper implementation of
KYC/AML/CFT Policy in the Group/Circle/SBU and to report to the Principal Officer (AML-CFT). What
is the designation of such designated official?
A) Money Laundering Officer (MLO)
B) Money Laundering Reporting Officer (MLRO)
C) Dy. Money Laundering Officer (DyMLO)
D) Officer for Money Laundering (OML)

Question 6
If cash is deposited in an account beyond the reporting threshold limit, what is the obligation upon a
Bank under Prevention of Money Laundering Act-2002?
A) Reporting of transaction under Counterfeit Currency Report (CCR) to FIU-IND.
B) Reporting of transaction under Cross-border Wire-Transaction Report (CBWTR) to FIU-IND.
C) Reporting of transaction under Non-profit Organisation's Transaction Report (NTR) to FIU-IND.
D) Reporting of transaction under Cash Transaction Report (CTR) to FIU-IND.
 KYC AML PART-1

Question 7
Reporting entity in respect of PMLA-2002, means a __________ financial institution, intermediary or
a person carrying on, a designated business or profession.
A) trading company
B) broking company
C) banking company
D) shell company

Question 8
Which section of UAPA 1967 provides powers to the Central Government to freeze, seize or attach
funds related to TF, for prevention of, and for coping with terrorist activities?
A) Section 51 A
B) Section 52 A
C) Section 54 A
D) Section 15 A

Question 9
Why accounts of NGOs/NPOS are considered more vulnerable and prone to money laundering and
terror financing?
A) It is due to the receipt of funds in the form of subscription, donation or gifts by these entities from
various open sources/persons.
B) It is due to possibility of intermingling of genuine funds with proceeds of crime are not very
remote in such NPOS/NGOS.
C) it is due to the fact that ?Donors? can often make contributions to NGOS/ NPOS anonymously,
providing a convenient vehicle to launder funds or move money across borders.
D) All of the above options are correct.

Question 10
Shell companies normally have no physical presence, mostly these companies exist only on
_________ and do not carry out any businesses of their own.
A) paper
B) internet
C) newspaper

Question 11
If a branch decides to report a suspicious transaction, to whom it shall report?
A) FIU-Ind
B) AML-CFT Department
C) Nodal police station
D) None of the above

Question 12
What is the process of introducing illicit funds into the financial system is called?
A) Placement of funds
B) Siphoning of funds
C) Layering of funds
D) Integration of funds
 KYC AML PART-1

Question 13
What is the prescribed periodicity of reporting eligible transactions under CTR?
A) The eligible transactions under CTR are to be reported on monthly basis by 15th day of the
succeeding month.
B) The eligible transactions under CTR are to be reported on quarterly basis by 15th day of the
succeeding month at the end of respective quarter i.e. by 15th July, 15th Oct, 15th Jan and 15th of
April month.
C) The eligible transactions under CTR are to be reported on monthly basis by 5th day of the
succeeding month.
D) The eligible transactions under CTR are to be reported on quarterly basis by 5th day of the
succeeding month at the end of respective quarter i.e. by 5th July, 5th Oct, 5th Jan and 5th of April
month.

Question 14
MHA has advised_______to attend the complaints escalated thorough above modes on 24 by 7 basis
to provide swift resolution and to curb the movement of funds immediately.
A) Reserve Bank of India
B) State Bank of India
C) all the Banks/Financial Institutions
D) None of the options is correct.

Question 15
What is full form of CFT?
A) Combating the financing of terrorists
B) Combating the financing of terrorism
C) Countering the financing of terrorism
D) None of the above

Question 16
What is the threshold limit of transactions to be reported under Cross-Border Wire Transfer Report?
A) Transactions of the value of more than Rs Five lakh or its equivalent in foreign currency
B) Transactions of the value of more than USD five lac or its equivalent in foreign currency
C) Transactions of the value of more than Ten lakh rupees or its equivalent in foreign currency
D) Transactions of the value of more than USD one million or its equivalent in foreign currency

Question 17
Why NGOs and Non-profit organizations are considered as a significant risk for terrorist financing, as
well as corruption and money laundering?
A) They have access to significant funding sources, often have a presence worldwide, and, in some
jurisdictions, are subject to little regulation.
B) The accounts of NGOs/ NPOs can not be considered more vulnerable and prone to money
laundering and terror financing in comparison to accounts of other entities/ individuals
C) The accounts of NGOs/ NPOs are as much vulnerable and prone to money laundering and terror
financing as accounts of other entities/individuals
D) None of the options is correct.
 KYC AML PART-1

Question 18
Banks have to communicate the name, designation, address and contact details of Designated
Director and Principal Officer to the________as well as to the Reserve Bank.
A) CBI
B) UAPA NODAL OFFICER
C) FIU-IND
D) ENFORCEMENT DIRECTORATE

Question 19
What is full form of FATF?
A) Fair Action Task Force
B) Financial Action Task Force
C) Front Action Task Force
D) Full Action Task Force

Question 20
PMLA-2002 defines money laundering offence and provides for the freezing, seizure and
_______ of the proceeds of crime.
A) release
B) confiscation
C) use
D) misuse

Question 21
Money launderers use the banking system for cleansing ?dirty money? obtained from criminal
activities with the objective of hiding/disguising its________.
A) use
B) source

Question 22
To retain customer confidence and comply with the MHA guidelines, __________ at LHO level have
been made operational to ensure focused monitoring.
A) Crime Cells
B) Cyber cafes
C) Cyber Cells
D) None of the options is correct.

Question 23
What is the role of a Professional Money Launderer (PML)?
A) Professional Money Launderers (PMLs) provide money laundering services, for a fee, to criminals
and/or organised crime groups (OCGS).
B) The main purpose of PMLS remains to facilitate money laundering.
C) PMLS provide their services to all potential clients who approach them, without differentiation
between various fund originating criminal activities.
D) All of the above options are correct.
 KYC AML PART-1

Question 24
Why to prevent terrorists and other criminals from having unfettered access to wire transfers?
A) Due to the potential terrorist financing threat posed by small wire transfers.
B) Bank and LEAs should be in a position to trace all wire transfers up to the remitter level.
C) There exists a potential terrorist financing risk through wire transfers, as happened in the 9/11
incident.
D) All of the above options are correct.

Question 25
Suspicious Transactions Reports (STRS) can be classified into two following broad categories that
is______________based on the source of the alert which resulted in escalating such STRS
A) System Generated STRS & Subjective STRS
B) Internal STRS & External STRS
C) Customer related STRS & Non-customer related STRS
D) Employee Initiated STRS & Customer initiated STRS

Question 26
While in some cases, the money mules may be innocent____________ sometimes they might be in
connivance with the criminals to launder the funds.
A) victims
B) criminals
C) hawala dealers
D) agents

Question 27
PML Act 2002 prescribes that the records of documents evidencing identity of its clients and
beneficial owners shall be maintained for a period of ??????.. from the date of cessation of business
relationship between a client and the reporting entity.
A) Two years
B) Eight years
C) Ten years
D) Five years

Question 28
Section 51A of the Unlawful Activities (Prevention) Act, 1967 (UAPA) empowers the Central
Government to-
A) freeze, seize or attach funds and other financial assets or economic resources
B) prohibit any individual or entity from making any funds, financial assets or economic resources or
related services available to terrorists
C) prevent the entry into or the transit through India of individuals listed in the Schedule to the Order
or any other person engaged in or suspected to be engaged in terrorism
D) The Central Government has been empowered to take all these actions.

Question 29
Who are called ?Money Mules??
A) A person who works hard like a ?Mule?(an animal) to earn money
B) Mule is an animal, being used for carrying money on it's back in hilly areas.
C) A person who allows his accounts to be used for money laundering purposes.
D) A person who uses other person's account/s for money laundering purposes.
 KYC AML PART-1

Question 30
Which of the following is a Red-flag for identification of a Shell company?
A) Nominal paid up capital/ authorized capital.
B) No/nominal statutory payments like GST etc.
C) Stock in trade is minimum or zero.
D) All of the options are correct.

Question 31
Over-invoicing (Short shipping) is one of the techniques of Money Laundering through Trade
transactions. In this technique the price of the good or service is misrepresented in the invoice by
exporter/ seller, by way of
A) decreasing the price below the 'fair market' price.
B) Exporter receives less fund or value from the importer.
C) None of the above is correct.
D) increasing the price above the 'fair market' price.

Question 32
Why account of a shell company should not be opened/maintained by a Bank?
A) Shell Companies may be used by criminals for laundering ill-gotten money, evading taxes and
perpetuating fraud.
B) Banks do not get substantial business from Shell companies.
C) Shell companies do not apply for loans and advances, hence are not viable option for interest and
other income for Banks.
D) Shell companies do not have any director on their board, hence it is risky proposition to open an
account of a shell company.

Question 33
Who reports the prescribed transactions to FIU-IND on behalf of the bank?
A) Principal Officer
B) MLRO
C) Dy MLRO
D) Assistant MLRO

Question 34
What is True about 'Subjective STRs'?
A) Subjective STRs are escalated, subject-wise, based on alerts triggered by AML software system.
B) Subjective STRs are escalated based on alerts or information received from Branches/staff/media
reports/law enforcement agencies etc.
C) Subjective Alerts along with STRs are generated, subject-wise by Core Banking System during End
of Day activities.
D) Subjective STRs are not reported to FIU-IND, due to their subjective nature.

Question 35
What constitutes the offence of Money Laundering?
A) Placement of funds constitutes the offence of Money Laundering.
B) Smurfing of funds constitutes the offence of Money Laundering.
C) Layering of funds constitutes the offence of Money Laundering.
D) Converting/ attempting to convert proceeds of crime' to appear as untainted property constitutes
the offence of Money Laundering.
 KYC AML PART-1

Question 36
What is meant by 'Placement process in Money Laundering Process?
A) Placing reliance on fraudulent means to do business.
B) Placing the amount of illegal money from one account to another through transfer entries.
C) Physical disposal of illegal cash or property by infusing them into the financial system
D) Placement of criminals in Money Laundry Process.

Question 37
What is the prescribed periodicity of reporting eligible transactions under STR?
A) The eligible transactions under STR are to be reported on as and when detected basis within 15
working days on being satisfied that the transaction is suspicious.
B) The eligible transactions under STR are to be reported on quarterly basis by 5th day of the
succeeding month at the end of respective quarter i.e. by 5th July, 5th Oct, 5th Jan and 5th of April
month.
C) The eligible transactions under STR are to be reported immediately on being satisfied that the
transaction is suspicious.
D) The eligible transactions under STR are to be reported on quarterly basis by 15th day of the
succeeding month at the end of respective quarter i.e. by 15th July, 15th Oct., 15th Jan and 15th of
April month.

Question 38
Is there any Penalty for any deficiency in filling the mandatory reports by reporting entities to FIU-
IND?
A) Any deficiency in filing the mandatory reports by reporting entities will attract minimum penalty
of Rs. 10,000/- which may go to Rs.1,00,000/- per instance per day.
B) Any deficiency in filling the mandatory reports by reporting entities will attract maximum penalty
of Rs. 10,000/- per instance per day.
C) Any deficiency in filing the mandatory reports by reporting entities will attract minimum penalty of
Rs. 1,00,000/-per instance per day with cap of Rs 10,00,000/-
D) The FIU_IND can not impose penalty on Reporting Entities.

Question 39
What is the period for which banks have to maintain records of 'registration of details' of customers
on the portal of NITI AYOG, who are Non-profit organisations (NPOs)?
A) 02 Years
B) 05 Years
C) 08 Years
D) 10 Years

Question 40
The responsibility of ensuring that our bank is not misused by unscrupulous elements for money
laundering and financing of terrorism, lies with__________
A) AML CFT Department
B) Compliance Department
C) operating units
D) each member of the staff
 KYC AML PART-1

Question 41
The ED comes under the________ within the Ministry of Finance.
A) Department of Revenue
B) Department of Expenditure
C) Department of Crimes
D) Department of AML-CFT

Question 42
Which international agency sets standards and guidelines to combat money laundering to be
followed by its member jurisdictions?
A) FIU
B) EGMONT GROUP
C) FATF
D) FSRB

Question 43
Shell companies may be identified on the basis of certain Offline Red-Flag Indicators (RFIs), which of
the following is an Offline Red-Flag Indicator (RFI) suggesting that the company is a Shell company?
A) Funds are transferred from a company to an unusually large number and different kind of
beneficiaries (from different sectors/businesses).
B) Little or no withdrawal from account of a company for business purposes/ no recurrent business
expenses observed.
C) Transfer of funds between account of companies having nominal authorized share capital and
having same authorized signatory
D) All of these RFIs suggest that such company may be shell company.

Question 44
List of Banned organisations is circulated to Banks by________
A) SBI
B) RBI
C) CBI
D) All of the above

Question 45
RFIs related to terror financing, which is odd one?
A) Sending or receiving funds through international remittances from and/or to locations of specific
concern
B) Favourable Media coverage of an account holder?s activities
C) Large number of cash transactions in the account
D) Accounts of charitable organisation linked to domestic/ cross border transactions

Question 46
Who is designated as PRINCIPAL OFFICER as per the 'AML/CFT STRUCTURE in our BANK?
A) G.M. (AML-CFT)
B) G.M. Network
C) C.G.M
D) M.D. (R,C & SARG)
 KYC AML PART-1

Question 47
What is meant by 'Integration' process in Money Laundering Process?
A) Integration of different criminal activities for Money Laundering.
B) Criminally derived assets which have been placed and layered are routed back to legitimate
economy.
C) Integration of different criminal groups for Money Laundering.
D) Integrated efforts and activities of Money Launderers for successfully carrying out the TBML

Question 48
How to prevent terrorists and other criminals from having unfettered access to wire transfers?
A) This can be achieved if basic information on the originator of wire transfers is captured.
B) This can be achieved if basic information on the originator of wire transfers is immediately
available to appropriate law enforcement and/ or prosecutorial authorities in order to assist them in
detecting, investigating. prosecuting terrorists or other criminals, and tracing their assets.
C) The originator information can also be put to use by the beneficiary bank to facilitate identification
and reporting of suspicious transactions to FIU-IND.
D) All of the above options are correct.

Question 49
The process of________usually involves creating a web of financial transactions so as to hide the
origin and true nature of 'Proceeds of crime.
A) money laundering
B) terror financing
C) criminal activities

Question 50
It is very important that the customers are neither told nor given any room for doubts in their mind
that while seeking additional information, bank is looking at their transactions/activity with
suspicion. Such disclosure/indication is termed as________.
A) Tipping off
B) Ringing off
C) Switching off
D) Signing off

Question 51
Typically, when should a financial institution file an STR?
A) When a customer attempts to deposits a counterfeit Indian currency note in his account.
B) Whenever a transaction, whether made in cash or not, of unusual or suspicious nature is
detected.
C) When a customer deposits more than Rs ten lac in single transaction.
D) When a customer withdraws more than Rs ten lac in single transaction.

Question 52
What is the designated role of DGM (B&O) as per the 'AML/CFT STRUCTURE in our BANK"?
A) Assistant MLROS
B) Dy. MLROS
C) MLROS (Money Laundry Reporting Officers)
D) Designated Directors
 KYC AML PART-1

Question 53
Which of the following is included in the category of Designated Non-Financial Businesses &
Professions (DNFBPs)?
A) Banks
B) Insurance Companies
C) Small Finance Banks
D) Real estate agents

Question 54
Name Screening reduces the risk of misuse of Bank?s channels and facilities by unscrupulous
elements for Money Laundering and or Terrorist Financing, by filtering out persons of criminal and
dubious background at the on-boarding stage itself.
A) FALSE
B) TRUE

Question 55
For Risk management, Bank has adopted a______ as per RBI Guidelines?
A) Customer Based Approach
B) Risk Based Approach
C) KYC Based Approach
D) Application Based Approach

Question 56
Which is correct about he Egmont Group?
A) It is a united body of Financial Intelligence Units (FIUS) of different countries.
B) It is an association of thirteen global banks.
C) The Group is also known as Wolsberg Group.
D) None of the options is correct.

Question 57
_____________has launched a national helpline number and rolled out https://cybercrime.gov.in
portal for reporting the financial cybercrime frauds by the victims.
A) Ministry of Cyber Crime (MCC)
B) Ministry of Home Affairs (MHA)
C) Reserve Bank of India
D) State Bank of India

Question 58
If a branch decides to report a suspicious transaction how it can report?
A) Through a letter to the CGM
B) FIR to be lodged
C) Through CTR portal
D) Through app in CBS

Question 59
The FATF has issued______ Recommendations which are minimum international standards to
combat the problem of ML/TF & Non Proliferation of Weapons of Mass Destruction.
A) 40
B) 32
C) 52
D) 28
 KYC AML PART-1

Question 60
What is meant by Placement of Money in respect to Money Laundering?
A) Placement represents the movement of proceeds of crime/ funds' through the financial system.
B) Placement represents the layering of 'proceeds of crime/ funds' through various accounts.
C) Placement represents the initial entry of 'proceeds of crime/ funds' into the financial system.
D) Placement represents the placement of laundered funds back into the legitimate economy.

Question 61
Which transactions are reported under CCR?
A) All cash transactions where forged or counterfeit currency notes or bank notes have been used as
genuine or where any forgery of a valuable security or a document has taken place facilitating the
transactions.
B) All cash transactions of the value of more than rupees ten lakhs where forged or counterfeit
currency notes or bank notes have been used as genuine or where any forgery of a valuable security
or a document has taken place facilitating the transactions.
C) All cash transactions of the value of rupees ten lakhs where forged or counterfeit currency notes
or bank notes have been used as genuine or where any forgery of a valuable security or a document
has taken place facilitating the transactions.
D) All cash transactions of the value of USD one million where forged or counterfeit currency notes
or bank notes have been used as genuine or where any forgery of a valuable security or a document
has taken place facilitating the transactions.

Question 62
What is the prescribed periodicity of reporting eligible transactions under NTR?
A) The eligible transactions under NTR are to be reported on monthly basis by 15th day of the
succeeding month.
B) The eligible transactions under NTR are to be reported on quarterly basis by 15th day of the
succeeding month at the end of respective quarter i.e. by 15th July, 15th Oct, 15th Jan and 15th of
April month.
C) The eligible transactions under NTR are to be reported on monthly basis by 5th day of the
succeeding month.
D) The eligible transactions under NTR are to be reported on quarterly basis by 5th day of the
succeeding month at the end of respective quarter i.e. by 5th July, 5th Oct, 5th Jan and 5th of April
month.

Question 63
AGM Regions/Branch Heads / Heads of the CPCS- are responsible for reporting of suspicious
transactions passing through their units. What is the designated role of AGM Regions/Branch Heads /
Heads of the CPCs as per the 'AML/CFT STRUCTURE in our BANK"?
A) Assistant MLROS
B) Dy. MLROS
C) MLROS) Money Laundry Reporting Officers)
D) Designated Directors for their respective offices.
 KYC AML PART-1

Question 64
What is True about 'System generated STRs'?
A) System Generated STRs are escalated based on alerts triggered by AML software system.
B) System Generated Alerts along with STRs are generated by Core Banking System during End of Day
activities.
C) System Generated Alerts are generated by staff through Core Banking System.
D) Subjective STRs are escalated based on alerts or information received from Branches/staff/media
reports etc.

Question 65
FIU-IND is an independent body reporting directly to the Economic Intelligence Council (EIC) headed
by the ?..
A) Governor, RBI
B) Prime Minister
C) Home Minister
D) Finance Minister

Question 66
Customer risk categorization (CRC) is carried out by AML-CFT Department at pre-defined periodicity.
Which of the following option regarding periodicity is not correct?
A) CRC is done, daily for the incremental accounts/customers.
B) CRC is done weekly for the incremental accounts/customers.
C) CRC is done at half-yearly intervals typically as on 31st March and 30th September every year or in
between if the need arises.
D) Review of customer risk categorization (CRC) of customers should be carried out at a periodicity of
not less than once in six months.

Question 67
What is a Shell company?
A) A company dealing in sea-shells.
B) A company registered on Shell Island.
C) Shell companies normally have no physical presence, have hidden owners, and sometimes project
the image of being a real, normal business entity.
D) All of the options are correct.

Question 68
Who are nominated as MLROS at Circle level as per the AML/CFT STRUCTURE in our BANK'?
A) DGM (C&R)s
B) GM (AML-CFT)
C) GM (Network)
D) DGM (CDO)

Question 69
Any property derived or obtained, directly or indirectly, by any person as a result of a criminal activity
related to a scheduled offence is called.
A) Proceeds of crime
B) Proceeds of sales of a property
 KYC AML PART-1

Question 70
Which transactions are reported under NTR?
A) All cash transactions involving receipts by non? profit organizations of value more than rupees five
lakh or its equivalent in foreign currency
B) All cash transactions involving receipts by non? profit organizations of value more than rupees ten
lakh or its equivalent in foreign currency
C) All transactions involving receipts by non? profit organizations of value more than rupees ten lakh
or its equivalent in foreign currency
D) All transactions involving receipts by non? profit organizations of value more than rupees five lakh
or its equivalent in foreign currency

Question 71
Transactions in the accounts of customers (like students, migrant labourers, temporary workers etc.)
apparently not matching with their____________ should be discreetly enquired into to detect the
possibilities of their misuse as Money Mules
A) religious profile
B) financial profile
C) political profile
D) social profile

Question 72
What is the act of Tipping Off?
A) The act of letting the customers know, that their transactions/accounts are under suspicion and
may be subject to reporting, is referred to as tipping off.
B) The act of giving money as tip/incentive to money mules.
C) The act of collecting information on suspected Transactions.
D) None of the Above

Question 73
All transactions passing through the domestic branches are processed by AML/CFT Cell using
___________ software to generate alerts on prima facie Suspicious transactions based on thresholds
fixed by the Bank for such filtration.
A) Special Anti Money Laundering Software
B) AMLOCK Software
C) Sensitive Activity Reporting Software
D) None of the above

Question 74
Which of the following is not correct regarding Shell Companies?
A) Shell companies normally have no physical presence, mostly these companies exist only on paper
and do not carry out any businesses of their own.
B) Bank should open accounts of Shell Companies/firms only after obtaining the desired documents.
C) Shell companies are used as popular vehicles to access the international financial system.
D) Under no circumstances accounts of Shell Companies/firms should be opened in Bank?s books.
than once in six months.

Question 75
What is the exact effect of "Under Invoicing technique in 'money laundering through trade
transactions' i.e., Trade Based Money Laundering (TBML)?
A) The exporter in this way is able to transfer additional value to the importer/ buyer.
B) The exporter in this way is able to transfer lesser value to the importer/buyer.’
 KYC AML PART-1

Question 76
Money laundering and terror financing are two most common types of___________ effects of which
go beyond seemingly merely innocuous financial transactions.
A) financial crimes
B) cyber crimes

Question 77
To facilitate proper monitoring of transactions by Money Laundering Reporting Officers (MLROS), as
per reporting structure that has been put in place, who is designated as Dy MLRO?
A) Dy. General Manager (Business & Operations)
B) Regional Manager for branches of the respective region
C) Branch heads for their respective branches
D) Dy. General Manager & CCO

Question 78
Under-invoicing (Over-shipping) is one of the techniques of Money Laundering through Trade
transactions. In this technique the price of the good or service is misrepresented in the invoice by
exporter/ seller, by way of
A) increasing the price above the fair market price.
B) decreasing the price below the 'fair market' price.
C) Exporter receives less fund or value from the importer.
D) None of the above is correct.

Question 79
As per Prevention of Money Laundering (Maintenance of Records) Rules-2005 what does a
?Suspicious Transaction? mean?
A) A transaction which gives rise to a reasonable ground of suspicion that it may involve the proceeds
of crime
B) A transaction which appears to be made in circumstances of unusual or unjustified complexity
C) A transaction which gives rise to a reasonable ground of suspicion that it may involve financing of
the activities relating to terrorism.
D) All of the Above

Question 80
Which of the following Offline Red-Flag Indicators (RFIs) will be helpful in identifying a Shell
Company?
A) Directors are persons of very low means.
B) Generally, no physical presence (other than a mailing address).
C) Transacting entities doing business with another company share the same address or there are
other address related inconsistencies.
D) All of these RFIs suggest that such company may be shell company.

Question 81
In case of foreign remittances favouring NGOS/ NPOS the extant Provisions of _________as amended
from time to time, wherever applicable, as well as bank's internal instructions in this respect must be
adhered to, before affording credits.
A) Prevention of Money Laundering Act, 2002
B) Foreign Contribution (Regulation) Act, 2010
C) FEMA, 1999
D) UAPA, 1967
 KYC AML PART-1

Question 82
Some of the Customer categories may carry more than the ordinary risk of money laundering and
terrorist financing and therefore warrant a better understanding and closer scrutiny by the operating
staff at all levels. Out of the list given below, which Customer category does not fall under this
category?
A) Multi-Level Marketing (?MLM?) Companies.
B) Relatives of Politically Exposed Persons.
C) Politically Exposed Persons (PEPs).
D) Account of NGOs promoted by UNO or its agencies.

Question 83
What is full form of FIU-IND?
A) Financial Intelligence Unit-India
B) Florida International University-India
C) Fair Intelligence Unit-India
D) First Intelligence Unit-India

Question 84
As per the RBI guidelines, what is the Periodicity of review of Customer Risk Categorisation (CRC)?
A) Review of risk categorization of customers should be carried out at a periodicity of not less than
once in a year.
B) Review of risk categorization of customers should be carried out at a periodicity of not less than
once in three months.
C) Review of risk categorization of customers should be carried out at a periodicity of not less than
once in six months.
D) Review of risk categorization of customers should be carried out only if there is a change in a
customer?s profile.

Question 85
How can branches prevent themselves from being used for Trade Based Money Laundering (TBML)
transactions? Select the right opton.
A) Branches can check TBML by following good practices of Customer Due Diligence (CDD).
B) Branches can check TBML by following good practices of Transaction Due Diligence (TDD).
C) The more a Branch know its customers (KYC) and understands their businesses, the lesser risk is
there of its association with a TBML transaction.
D) All these practices are helpful for branches for preventing themselves from being used for Trade
Based Money Laundering (TBML) transactions.

Question 86
Which Act in India provides powers to the Central Government to freeze, seize or attach funds
related to TF, for prevention of, and for coping with terrorist activities?
A) PML ACT 2002
B) PML RULES 2005
C) AML ACT 2005
D) UAPA 1967
 KYC AML PART-1

Question 87
RBI through its Master Directions- Know Your Customer (KYC) Direction, 2016, has directed that all
Regulated Entities (RE) to maintain all necessary records of transactions between the RE and the
customer, both domestic and international, for at least ?????. from the date of transaction.
A) Two years
B) Eight years
C) Ten years
D) Five years

Question 88
The URL of the Cyber Crime Portal https://cybercrime.gov.in and the helpline number should be
displayed in the_____________to create awareness among the customer and general public.
A) Branch premises
B) RBOS
C) AOS
D) None of the options is correct.

Question 89
What is the threshold limit of depositing cash in an account, for the reporting purpose?
A) All cash transactions of the value of rupees ten lakhs or its equivalent in foreign currency.
B) All cash transactions of the value of more than rupees ten lakhs or its equivalent in foreign
currency.
C) All cash transactions of the value of rupees ten lakhs and more or its equivalent in foreign
currency.
D) All cash transactions of the value of USD one million or its equivalent in Indian currency.

Question 90
How can the operations in the accounts of money mules be minimised in banks?
A) The operations of such mule accounts can be minimised by identifying and educating money
mules.
B) The operations of such mule accounts can be minimised by following the guidelines on opening of
accounts and monitoring of transactions.
C) The operations of such mule accounts can not be minimised as they have deep penetration in the
banking
system.
D) It is not obligatory on banks to identify money mules or minimise such transactions.

Question 91
One of the techniques of Trade Based Money Laundering (TBML) is where the exporter/ seller lowers
the price of the goods or services in the invoice, that is invoices below the 'fair market price. What is
the nomneclature for this technique of TBML?
A) Over-invoicing (Short-shipping)
B) Under-invoicing (Over-shipping)
C) Multiple invoicing
D) Mis-declaration of goods

Question 92
Money laundering is a generic term used to describe the process by which the proceeds derived
from activities are made to appear as to have been derived from a legitimate source.
A) legitimate
B) criminal
 KYC AML PART-1

Question 93
Financial Regulators (RBI, SEBI and IRDA) shall appoint a UAPA Nodal Officer and communicate the
name and contact details to the
A) Central [designated] Nodal Officer for the PML Act
B) Central [designated] Nodal Officer for the Terrorist Act
C) Central [designated] Nodal Officer for the Unlawful Activities Prevention Act
D) Central [designated] Nodal Officer for the Terrorist Activities Prevention Act.

Question 94
Which transactions are reported under STR?
A) All suspicious transactions whether or not made in cash.
B) All suspicious transactions made in cash of the value more than ten lakh rupees or equivalent
foreign currency.
C) All suspicious transactions involving receipts whether or not made in cash.
D) All suspicious transactions involving payments/transfers made in cash.

Question 95
Why 'Wire transfer' is considered the most preferred route for transfer of funds across the globe?
A) Wire transfers, do not involve actual movement of currency.
B) Wire transfer is an instantaneous mode for transfer of funds from one location to another.
C) Wire transfer is a rapid and secure method for transferring value from one location to another.
D) All of the above options are correct.

Question 96
Which of the following Due Diligence (TDD) measures should be applied by branches in respect of
Non Profit Organisations (NPOs)?
A) NPO customers operating/transacting majorly in high-risk areas/locations may require further
Transaction Due Diligence (TDD) to check whether transactions in the account are in tune with the
declared activity/business of the customer.
B) In case of remittances favouring NGOS/ NPOS the extant FCRA provisions, bank's instructions and
SOPs must be adhered to, before affording credits.
C) If any suspicious transactions patterns from AML/CFT angle are observed, the branch should
advise the controllers and the AML/CFT cell Jaipur through one-page subjective STR for further
reporting to FIU-IND.?
D) All of the above options are correct.

Question 97
What is the name of the portal of NITI AYOG, where banks have to register the details of customers
who are non- profit organisations (NPOs)?
A) MIRROR
B) NPO PORTAL
C) CYBER PORTAL
D) DARPAN

Question 98
Government of India has set up a Central Know Your Customer Registry (CKYCR) for storage of data
and allotment of a uniform KYC number (CKYC Identifier) to the customer of Regulated Entities (RES).
A) TRUE
B) FALSE
 KYC AML PART-1

Question 99
Accounts of NGOs/ NPOS are considered more vulnerable and prone to
A) money laundering only
B) terror financing only
C) money laundering and terror financing both.
D) donations and subscriptions

Question 100
What is Trade Based Money Laundering or TBML?
A) TBML is the process of soliciting, collecting or providing the funds for activities related to
terrorism.
B) TBML is the process of disguising the proceeds of crime and moving value using trade transactions
to legitimize their illicit origins.
C) TBML is the process of money laundering through Identity theft.
D) TBML is the legitimate process/ business of money laundering.

Question 101
Terrorist organizations also use charitable operations as covert fundraising operations to gather funds
from supporters overseas. Which of the following can be treated as a Red-flag to identify suspicious
NGOs/NPOs?
A) NGOs/NPOs that conduct wire transfers to countries where they have no operations.
B) NGOS/ NPOs that operate in high-risk countries.
C) NGOs/NPOs with a vague description of their purpose and services.
D) All of the above options are correct.

Question 102
Which of the following reports, Bank is not obliged to submit to Financial Intelligence Unit-India (FIU-
IND) under PMLA-2002?
A) Cash Transactions Reports (CTRS)
B) Counterfeit Currency Reports (CCRs)
C) Non Profit Organisations Transactions Report (NTRs)
D) Action Taken Reports (ATRS)

Question 103
Banks have to maintain records of 'registration of details at the DARPAN portal of NITI AYOG, of
customers who are NPOs for a certain period. From which date this period starts?
A) after the business relationship between the customer and the RE has ended.
B) from the date of opening of account
C) from the date of registration on portal of NITI AYOG.

Question 104
Who is the Central [designated] Nodal Officer for reporting as detailed in the Prevention and
Suppression of Terrorism (Implementation of Security Council Resolutions) Order, 2007 issued under
the UAPA 1967?
A) The Additional Secretary (CTCR), Ministry of External Affairs
B) The Additional Secretary (CTCR), Ministry of Home Affairs
C) The Senior Secretary (CTCR), Ministry of Home Affairs
D) The Senior Secretary (CTCR), Ministry of External Affairs
 KYC AML PART-1

Question 105
For funding the 9/11 attack, the funds had been deposited into U.S. accounts, primarily through wire
transfers. Why this mode of 'wire transfer was preferred by financers of terrorism for moving funds?
A) Wire transfer is an instantaneous mode for transfer of funds from one location to another.
B) Wire transfer is a rapid and secure method for transferring value from one location to another.
C) Wire transfers, do not involve actual movement of currency.
D) All of the above options are correct.

Question 106
The PMLA-2002 and PML Rules-2005 notified there under impose______ on Reporting Entities.
A) certain benefits
B) certain obligations
C) certain reliefs
D) certain amendments

Question 107
Can insurance company be also used for money laundering purposes?
A) Banks, (not Insurance companies), can be used for money laundering purposes.
B) Insurance company can also be definitely used for money laundering purposes.
C) The data is not sufficient to reach to any conclusion.
D) None of the options is correct.

Question 108
What is the prescribed periodicity of reporting eligible transactions under CBWTR?
A) The eligible transactions under CBWTR are to be reported on monthly basis by 5th day of the
succeeding month.
B) The eligible transactions under CBWTR are to be reported on quarterly basis by 5th day of the
succeeding month at the end of respective quarter i.e. by 5th July, 5th Oct, 5th Jan and 5th of April
month.
C) The eligible transactions under CBWTR are to be reported on monthly basis by 15th day of the
succeeding month.
D) The eligible transactions under CBWTR are to be reported on quarterly basis by 15th day of the
succeeding month at the end of respective quarter i.e. by 15th July, 15th Oct, 15th Jan and 15th of
April month.

Question 109
What type of business model is used by Professional Money Launderers (PMLs)?
A) PMLS can be operating in the capacity of individuals.
B) PMLS can be operating in the capacity of groups.
C) PMLS can be operating in the capacity of well organised institutions having a clear structure and
hierarchy in place.
D) All of the above options are correct.

Question 110
What is meant by 'Layering' process in Money Laundering Process?
A) Separation of illicit proceeds from their original sources and beyond the grasp of local law enforcement
agencies by layering of financial transactions with the intention to conceal the origin of the proceeds.
B) Integrated efforts and activities of Money Launderers for depositing of proceeds of crime into
financial system.
C) Layering of different criminal activities for Money Laundering
D) Creating layers of Cash for easily counting the money by Money Launderers.