1.

The question reads: "While opening a new account for a Society, the most important
document(s) to be verified is/are ______ (Select the most appropriate option from among the
following)."
(a) Financial statements of the Society
(b) The Bye-laws of the Society
(c) List of members of the Society
(d) Both (a) and (c) above

2. Question Text: "In the money laundering process 'Placement' means ______ (Select the most
appropriate option from among the following)."
Answer Options:
a. (a) Alternative banking system that operates outside the regulatory environment.
b. (b) Transferring illegal money through various financial transactions.
c. (c) Putting illegal money in legitimate financial institutions.
d. (d) Illegal money getting associated with legal money.

3. Question Text: "What is the status of India with respect to the Egmont Group? (Select the most
appropriate option from among the following)"
Answer Options
(a) India is a member of Egmont Group.
(b) India has applied for the membership and is awaiting the same.
(c) India is not a qualified member of Egmont Group.
(d) India is an observer of the Egmont Group.

4. Question Text: "Which one of the following may not be a suspicious transaction? (Select the
most appropriate option from among the following)"
Answer Options:
a. (a) Receiving large value wire transfers and immediate purchase of frontmen’s favoring tax
havens.
b. (b) Regular transferring or receiving funds to or from known money launderers.
c. (c) Depositing a cheque of large amount with an unknown source.
d. (d) Only large cash transactions with an associated manufacturing company.

5. Question Text: "As per the revised norms of SEBI, KYC has been made mandatory for different
categories of investors who wish to invest in the schemes of Mutual Funds. In this connection,
which of the following is correct?"
Answer Options:
a. (a) For individuals investing Rs. 50,000 and more.
b. (b) For Non-Individual Investors (Corporates, Partnerships, Trusts, HUF, etc.) investing any
amount.
c. (c) For NRIs and PIOs investing any amount.
d. (b) and (c) only.
6. Question Text: "The basic objective behind PMLA, 2002 is... (Select the most appropriate option
from among the following)"
Answer Options
 (a) To prevent tax evasion
 (b) To combat money laundering (in confiscation of properties derived from money laundering)
 (c) To prevent money lending at rates higher than the limit of money lenders
 (d) To bolster bank's efforts to contain theft or money deposits

7. Question Text: "As per Income Tax Guidelines, which one of the following is considered as the
most required document for KYC (Know Your Customer) purpose? (Select the most appropriate
option from among the following)"
Answer Options:
(a) Copy of PAN Card
(b) Latest bank statement duly attested by the applicant
(c) Details of Income Tax paid
(d) Details of order from the Income Tax authority

8. Question Text: "Financial Action Task Force (FATF) was ______ (Select the most appropriate
option from among the following)"
Answer Options:
 (a) Formed as a Joint Parliamentary Committee by the Indian Parliament for follow-up action on
the country's anti-money laundering efforts
 (b) Formed by the Indian Parliament to examine issues with the stock exchange scam and its
possible connection to money laundering
 (c) Established by the G-7 Summit in Paris, 1989 for international benchmarking of and
drawing up counter measures against money laundering
 (d) Formed by the WTO in July 1991 for free flow of international trade and avoidance of
protective tariffs and duties

9. Question Text: "In computerized branches of banks, the balances of the customers, for AML
purposes, are to be checked/verified with ______ (Select the most appropriate option from
among the following)"
Answer Options:
 (a) Drawing power of the customers
 (b) Trust/limits set for the customers
 (c) Overall limits of the customers
 (d) Details fixed by FIU

10. Question Text: "Hawala system means ______ (Select the most appropriate option from among
the following)"
 Answer Options:
(a) Alternative remittance system that operates outside the regulatory environment
(b) Transferring illegal money through various financial transactions
(c) Putting illegal money in legitimate financial institutions
(d) Illegal money getting associated with legal money

11. Question Text: "Cross Border Wire Transfer Reports (CBWTRSs) are in respect of all cross-border wire
transfers of more than Rs. ______ lakhs or its equivalent, either the origin or destination of the funds is
in India (Select the most appropriate option from among the following)"
Answer Options:
 (a) 10
 (b) 05
 (c) 01
 (d) None of the above

11. Question Text: "Money Laundering means ______ (Select the most appropriate option from
among the following)"
Answer Options:
 (a) Exchange of soiled currency notes for fresh ones
 (b) Transfer of legally acquired funds to a safe haven
 (c) Conversion of assets into cash
 (d) None of the above

12. Question Text: "Countries with weak/deficient controls for transactions as a customer of your
international branch. They have been your correspondent banks for dealing on their behalf with
other correspondent banks in the country of the correspondent banks. You have received
remittances through two of your correspondent banks in the country of the correspondent
banks. What action needs to be considered now? (Select the most appropriate from among the
following)"
Answer Options
 (a) Company is not dealing with you and has closed its accounts. The transfer is now within your
country now hence no action is required.
 (b) Close down transactions with you having all these accounts. The transfer is within your
country now hence no action is required.
 (c) You are having remittances from the accounts as transactions have taken place in account at
your end hence the action is required.
 (d) You have received remittances through these accounts. No action needs considering new
clientele.

13. Question Text: "A joint account of a couple, the husband working as a watchman and the wife
as a senior nurse, was operated for about five years without any significant activity. After about
a year, the branch received remittances to the tune of about Rs. 1.5 Lac. Some of the
 remittances were generally monthly remittances to the account from other branches to the tune
of about Rs. 10,000 to Rs. 15,000. The account became dormant. It was said that the watchman
sold some ancestral property. What should the bank do? (Select the most appropriate option
from among the following)"
Answer Options:
a. (a) Close the account.
b. (b) File a STR (Suspicious Transaction Report).
c. (c) Convert the account into an operative account before crediting the amounts.
d. (d) They may be proceeds of drug trafficking. Report them to the local police.

14. Question Text: "FIU-IND is an independent body reporting directly to ______ (Select the most
appropriate option from among the following)"
Answer Options:
a. (a) RBI (Reserve Bank of India)
b. (b) The Economic Intelligence Council (EIC) headed by the Finance Minister
c. (c) SEBI (Securities and Exchange Board of India)
d. (d) CBI (Central Bureau of Investigation)

15. Question Text: "Which one of the following is not a suspicious funds transfer? (Select the most
appropriate option from among the following)"
Answer Options:
a. Receipt of large volume of funds in an account which is immediately transferred to another
centre leaving minimum balance.
b. Maintaining several accounts and transferring amounts among them using one master
account.
c. Salary credit in an account and seeking funds transfer on the same date from that
account.
d. A person with no record of past or present employment makes multiple transactions.

16. Question Text: "Which one of the following is more likely to be a suspicious activity? (Select the
most appropriate option from among the following)"
Answer Options:
a. Exchanging an unusually large amount of small denomination notes for those of higher
denominations.
b. Purchasing/selling of small volumes of foreign currency in cash.
c. Withdrawals of amounts from a previously dormant account.
d. Frequent small amount withdrawals through ATMs.

17. Question Text: "Which one of the following is correct regarding reporting of suspicious
transactions? Should the Money Laundering Reporting Officer/ also called Principal Officer is to
be appointed by? (Select the most appropriate option from among the following)"
Answer Options:
(a) MA&SD (Money Laundering and Special Department)
(b) The activity can be minimized.
(c) Any employee of the bank can be asked to perform this responsibility.
(d) Bank's regulated department should have only separate independent cell for this.
18. Question Text: "Categorization of customers as 'low', 'medium' or 'high' risks is ______ (Select the
most appropriate option from among the following)"
Answer Options:
a. (a) On account of extra precaution specially for borrowers from credit risk perspective
b. (b) Helpful in deciding the intensity of monitoring of transactions in customers' account from
anti-money laundering perspective
c. Done when there are heavy transactions in the account
d. Done only in Basic Savings Bank Deposit accounts

19. Question Text: "The method of mitigation of the inherent risk of money laundering in Trusts is
______ (Select the most appropriate option from among the following)"
Answer Options:
a. Stringent registration process for trusts
b. Trustees to include government officials
c. Verification of the identity of the providers, controllers (trustees) and beneficial owners of
the trust
d. Placing a ceiling on the amounts that may be handled by trusts low enough for effective control
and risk containment
20. Question Text: "Which one of the following is not the objective of PMLA? (Select the most
appropriate option from among the following)"
Answer Options:
a. Prevention, control and combating activities of money laundering.
b. Confiscation of property involved in money laundering.
c. Dealing with matters connected to money laundering.
d. Dealing with provisions of Investments as per Income Tax Act.

21. Question Text: "Which one of following statements is correct? (Select the most appropriate
option from among the following.)"
Answer Options:
a. The Board has no role in the AML programme of the insurer.
b. Internal audit is pivotal to a robust AML programme.
c. Single premium contracts in life insurance are outside the purview of the AML programme.
d. It is the exclusive duty of the front-line marketing staff to ensure compliance with AML
requirements.

22. Question Text: "Which of the following is/are the few example(s) on 'Transactions not
consistent with customers business'?
(i) Frequent deposit of instruments with multiple endorsements Transfer/BC
(ii) Accounts large volume of credits through DD/Electronic Transfer/BC
(iii) Frequent exchange of small denomination notes for large denomination notes and
vice versa.
(Select the most appropriate option from among the following)"
Answer Options:
a. (i) only
b. (i) and (ii) only
 c. (ii) and (iii) only
d. (i) and (iii) only

23. Question Text: "The method of mitigation of the inherent risk of money laundering in Trusts is
______ (Select the most appropriate option from among the following)"
Answer Options:
a. Stringent registration process for trusts
b. Trustees to include government officials
c. Verification of the identity of the providers, controllers (trustees) and beneficial owners
of the trust
d. Placing a ceiling on the amounts that may be handled by trusts-low enough for effective
control and risk containment

24. Question Text: "Which one of the following is the most important document to be obtained
while opening a new account for a partnership firm? (Select the most appropriate option from
among the following)"
Answer Options:
a. No Objection Certificate from their present bankers
b. Registered Partnership Deed (registration for declaration of partnership)
c. Returns of all partners
25. Question Text: "Very high account turnover inconsistent with the size of the balance maintained
in an account may indicate that funds are being ______ (Select the most appropriate option
from among the following)"
Answer Options:
a. drained
b. layered
c. integrated
d. washed

26. Question Text "Which of the following can be the reasons for not opening an account of a
person by the bank despite applicant's existence?"
Answer Options:
a. Matching of the applicant with various KYC norms
b. Non-cooperation of the applicant in furnishing KYC details
c. The applicant's providing differing reasons for not opening account in another city/bank branch
d. All of the above

27. Question Text: "When can the imposed order under PMLA, 2002, to any person or entity be
recovered [appealed] after the person or the entity admits having the offence? (Select the most
appropriate option from among the following)"
Answer Options:
 (a) After a period of 30 days from the date of such imposition.
 (b) After a period of 3 months from the date of such imposition.
 (c) After a period of 6 months from the date of such imposition.
 (d) None of the above.
28. Question Text: "As per the revised norms of SEBI, KYC has been made mandatory for different
categories of investors who wish to invest in the schemes of Mutual Funds. In this connection,
which of the following are correct?
 1. For resident individuals investing Rs. 50,000 and more.
2. For resident individuals (Corporates, Partnerships, Trusts, HUF, etc.) investing any amount.
(Select the most appropriate option from among the following)"
Answer Options:
 (a) 1 only
 (b) 2 only
 (c) 1 and 2
 (d) None of the above

29. Question Text: "Money laundering is global and the persons behind these transactions appear
to be using banking channels indicative of macroeconomic consequences on countries which
have a larger exposure to it. Which of the following are the direct consequences?
(I) It can cause unpredictable changes in money demand
(II) It poses risks to the soundness of financial institutions and financial systems
(III) It increases the volatility of international capital flows and exchange rates
due to illicit cross-border movement
(IV) It can have a negative impact on economic growth
(Select the most appropriate option from among the following)"
 Answer Options:
o (a) (II) and (IV) only
o (b) (I), (II), (III) and (IV)
o (c) (I) and (II) only
o (d) (I) and (III) only

30. Question Text: "Which one of the following is not called Money Laundering transaction? (Select
the most appropriate option from among the following)"
Answer Options:
 (a) Transactions designed to evade anti-money laundering guidelines
 (b) Intentions to evade taxation
 (c) Involvement of funds for business and disclosed in cross border transactions
 (d) Intentions to hide or disguise assets derived from illegal activities

31. Question Text: "Tipping off implies ______ (Select the most appropriate option from among the
following)"
Answer Options:
 (a) Reporting the money laundering activities formally
 (b) Informing the account holder regarding the monitoring of his account
 (c) Giving some money out of the way for opening an account
 (d) Reporting the money laundering activities informally

32. Question Text: "The most preferred entity for terrorism financing is ______ (Select the most
appropriate option from among the following)"
Answer Options:
a. Limited Liability Partnership
b. Trusts
c. Partnership firms
d. Listed Companies
 33. Question Text: "As per Money Laundering Act, NGOs ______ (Select the most appropriate
option from among the following)"
Answer Options:
 (a) Can be used as a medium by persons associated with NGO, who may use it as a safer
medium for money laundering
 (b) May be possibly used for money laundering when NGOs undertake business activities
 (c) Are for social cause and they are not used for Money Laundering
 (d) Fall under exempted category under PMLA, 2002

34. Question Text: “Which of the following is NOT a red flag that might indicate money laundering
activity?"
Answer Options:
 (a) Large, unusual cash deposits
 (b) Frequent small transactions
 (c) High account turnover
 (d) Regularly scheduled salary deposits

35. Question Text: "Which one of the following may not be considered as an operational failure in
following KYC norms by Financial Institutions? (Select the most appropriate option from among
the following)"
Answer Options:
o (a) Inadequate record keeping of customer identification documents
o (b) Not following the documented data collection and verifying with KYC procedures
o (c) Having KYC norms which are difficult to implement
o (d) Making KYC norms available at operational branches only

36. Question Text: "Prevention of Money Laundering Act, 2002 (PMLA, 2002) has its jurisdiction
over ______"
Answer Options:
a. Whole of India
b. Whole of India except the State of J & K
c. Whole of India except the State of Nagaland
d. Whole of India except certain Union Territories

37. Question Text: "Who appoints the Director of FIU-IND? (Select the most appropriate option
from among the following)"
Answer Options:
(a) Government of India
(b) Reserve Bank of India
(c) Appointment Committee of Parliament
(d) Speaker of the Lok Sabha

38. Question Text: "Foreign currency notes of USD 25,000 may be accepted for deposit in an existing
account of an NRI — (Select the most appropriate option from among the following)"
Answer Options:
 (a) If it is made by the NRI in person with production of a valid Passport and a letter explaining
the source of the foreign currency.
 (b) If it is made by the NRI in person along with a currency declaration form countersigned by
the Customs.
 (c) If it is made by the NRI, in person, at the airport.
 (d) If it is made by a blood relative/spouse of the NRI along with a request letter addressed to
the Bank Manager.

39. Question Text: "What is the meaning of 'Washing Dirty money'? (Select the most appropriate
option from among the following)"
Answer Options:
 (a) Payment of applicable Income Tax on the "Dirty" money (disclosure by Government of India)
 (b) A person is trapped red handed while taking the "Dirty" money specific evidence of Black
money disclosure
 (c) Putting money through a series of transactions so that it comes out as "clean" in another
city/country or converts into an account.
 (d) Putting "Dirty" money into an account.

40. Question Text: "Which one of the following is not called Money Laundering transaction? (Select
the most appropriate option from among the following)" Answer Options:
 (a) Transactions designed to evade anti-money laundering guidelines
 (b) Intentions to evade taxation
 (c) Involvement of funds for business and disclosed in cross border transactions
 (d) Intentions to hide or disguise assets derived from illegal activities

41. Question Text: "In categories of cross-border wire transfers, which of the following statements
is/are required to be accompanied by wire transfer instructions?
(i) Complete originator information i.e. name, address, customer identification
number
(ii) Complete beneficiary information i.e. name and account number (Select the
most appropriate option from among the following)"
Answer Options:
 (a) (i) only
 (b) (ii) only
 (c) (i) and (ii) only
 (d) None of these

42. Question Text: "For effective understanding of a customer and monitoring his
transactions, the operating staff should adhere to preset parameters in monitoring the
customer's business/ownership. Which of the following is/are important?
(i) Match transactions against a limit lower than the threshold limit/profile so
that breach of the same can be avoided.
(ii) Effective KYC process, reporting and transaction profile.
(Select the most appropriate option from among the following)"
 Answer Options:
(a) (i) only
(b) (ii) only
(c) (i) and (ii) only
(d) None of these
43. Question Text: "In case of KYC standards which of the following conditions apply/breach?
 (i) Non-verification of customer at the time of account opening
(ii) Accepting account in a fictitious name
(iii) Non-reporting of cash transactions above a specified limit
(Select the most appropriate option from among the following)"
 Answer Options:
o (a) (i) only
o (b) (i) and (ii) only
o (c) (ii) and (iii) only
o (d) (i), (ii) and (iii)

44. Question Text: "The interdependence of banks has become critical due to ______ (Select the
most appropriate option from among the following)"
Answer Options:
 (a) Wide range of products handled by banks
 (b) Risk management systems of banks
 (c) Increase in global trade
 (d) Increase the complexity in cross-border transactions

45. Question Text: "Regulatory guidelines expect banks to have comprehensive KYC policies
like ______ (Select the most appropriate option from among the following)"
 Answer Options:
o (a) Code of Conduct
o (b) Customer acceptance, identification and monitoring, risk management
o (c) Stringent Corporate Governance
o (d) Right to Information

46. Question Text: "Your branch is on a deposit drive. An individual, popular in the locality but
possibly a member of a banned organization desires to open a new account with you. Will
you open the account? (Select the most appropriate option from among the following)"
 Answer Options:
o (a) Yes, he should produce evidences indicating good potential business
o (b) Yes, because he is popular locally and existing customer with satisfactory
transactions
o (c) No, because membership of such organizations cannot be verified
o (d) No, such accounts are not to be opened

47. Question Text: "For proprietary concerns, in addition to the OVD applicable to the individual
(proprietor), which of the following documents is/are required to be submitted?
(i) Bank statement
(ii) Registration certificate/License issued by the municipal authorities
under Shop and Establishment Act
(iii) Sales and income tax returns 1
(iv) GST Registration Certificate"
 Answer Options:
o (a) Only (i)
o (b) Only (ii)
o (c) Only (ii), (iii) and (iv)
 o (d) Any two of (ii), (iii) and (iv)

48. Question Text: "Money laundering is global and the persons behind these transactions appear to be
using banking channels with ease. Money laundering can have a range of severe macroeconomic
consequences on countries. Which of the following are the direct consequences?
(I) It can cause unpredictable changes in money demand.
(II) It poses risks to the soundness of financial institutions and financial systems.
(III) It increases the volatility of international capital flows and exchange rates due to unanticipated
cross-border transfers.
(IV) It increases the uncertainty in political circles.
(Select the most appropriate option from among the following)"
 Answer Options:
 (a) (II) and (IV) only
 (b) (I), (II), (III) and (IV)
 (c) (I) and (II) only
 (d) (I) and (III) only

49. Question Text: "As per the revised norms of SEBI, KYC has been made mandatory for different
categories of investors who wish to invest in the schemes of Mutual Funds. In this connection, which
of the following is/are correct?
(1) For resident individuals, investing Rs. 50,000 and more.
(2) For resident individuals (Corporates, Partnerships, Trusts, HUF, etc.)
investing any amount.
(3) For Non-resident individuals PIOs investing any amount.
(Select the most appropriate option from among the following)"
 Answer Options:
o (a) (1) only
o (b) (2) and (3) only
o (c) (1) and (3) only
o (d) All of these
o
50. Question Text: "The method of mitigation of the inherent risk of money laundering in Trusts is
______ (Select the most appropriate option from among the following)"
Answer Options:
 (a) Verification of the identity of the providers, controllers (trustees) and beneficial owners of
the trust
 (b) Trustees to include government officials
 (c) Stringent registration process for trusts
 (d) Placing a ceiling on the amounts that may be handled by trusts-low enough for effective
control and risk containment

51. Question Text: "Which of the following is not a key consideration in risk management for foreign
bank expansion? (Select the most appropriate option from among the following)"
Answer Options:
 (a) Understanding the host country regulatory environment
 (b) Assessing the potential risks associated with the expansion
 (c) Conducting a detailed due diligence of the potential partners
 (d) Ensuring that the bank has sufficient capital to support the expansion
52. Question Text: "How to arrive at the decision that a transaction is suspicious or not and to be
reported accordingly? (Select the most appropriate option from among the following)"
Answer Options:
 (a) Any transaction which appears unusual and not matching customer's profile may be reported
without further enquiries.
 (b) Service of investigating officials is necessary before considering a transaction as suspicious.
 (c) Due diligence of customer is necessary considering the type of activity and nature of
business.
 (d) Such transactions which are matching customer profile and are disclosed as foreign exchange
are to be considered.

53. Question Text: "If a bank has reason to believe that a customer is intentionally structuring domestic
wire transfers of amounts below Rs. 50,000, to avoid reporting, the bank should ______ (Select the most
appropriate option from among the following)"
Answer Options:
 (a) insist for complete customer identification and if not given, efforts be made to establish his
identity and file STR
 (b) file an FIR with the local police on the crime of deceiving the tax authorities
 (c) report the details of remittances to the concerned Income Tax Authority of the area
 (d) refuse the request of wire transfer

54. Question Text: "A Banking Company under the PMLA, 2002 ______ (Select the most appropriate
option from among the following)"
Answer Options:
 (a) Excludes Co-operative Banks but covers Regional Rural Banks
 (b) Covers both Regional Rural Banks and Co-operative Banks
 (c) Excludes from its ambit both Co-operative Banks and Regional Rural Banks
 (d) Excludes Regional Rural Banks but covers Co-operative Banks

55. Question Text: "The Enforcement Directorate functions are under the control of ______ (Select the
most appropriate option from among the following)"
Answer Options:
 (a) Finance Secretary
 (b) Department of Revenue
 (c) Ministry of Home Affairs
 (d) Ministry of Finance

56. Question Text: "A new partnership firm approaches you to open a current account. But it has not
started its business. By managing partner, it is stated that they require some time together to do so. Will
you open the account? (Select the most appropriate option from among the following)"
Answer Options:
 (a) Yes, the partners have good business potential and it is acceptable
 (b) Yes, but only when the business is started.
 (c) No, pre-mature to do so as business need to be worked out.
 (d) Yes, if required documents are provided.
57. Question Text: "Banks are required to maintain record of the cash transactions of amount exceeding
Rs. 10 lakh in a month in which they generate CTR. What kind of information they should preserve?
(i) Nature of transaction
(ii) Amount of transaction
iii) Currency of transaction
iv) Parties connected in transaction
(Select the most appropriate option from among the following)"
Answer Options:
 (a) (i) and (ii) only
 (b) (i), (ii), (iii) and (iv)
 (c) (i), (ii) and (iv) only
 (d) (ii) and (iv) only

58. Question Text: "Which one of the following statements is not correct with regard to cross border
transactions?"
Answer Options:
 (a) Each cross border wire transfer must be accompanied by accurate originator information
 (b) Unique reference number as prevalent in the country which cannot be treated as per the
 (c) Information accompanying cross border wire transfer to contain the name and address of the
originator
 (d) The originator's account number is mandatory

59. Question Text: "Which one of the following authorities has the powers to enforce the provisions of
the Prevention of Money Laundering Act 2002 (PMLA) Entities? (Select the most appropriate option
from among the following)"
Answer Options:
 (a) Director Directorate of Revenue Intelligence
 (b) Enforcement Directorate
 (c) Secretary, Department of Revenue, Finance Ministry
 (d) None of the above

60. Question Text: "When a suspicious transaction is noticed and is being enquired into by the bank
______ (Select the most appropriate option from among the following)"
Answer Options:
 (a) The customer should not be tipped off
 (b) Operations in the account should be stopped and closed immediately
 (c) Only the proprietor should be informed and account can continue
 (d) The bank should take the customer into confidence and discuss with him.