MCQs ON Know Your Customer ( KYC)

1 The correct sequence of stages of money laundering is?

a. Placement; Layering; Integration b. Integration; Layering; Placement
c. Layering; Integration; Placement d. None of the above

2 In terms of PML Amendment Act 2012, banks should maintain for at least
____years from the date of transaction between bank and client.
a. 10 b. 5
c. 7 d. unlimited
3 Failure to comply with the obligation of maintenance of records, furnishing
information and verifying the identity of clients, the Director FIU-IND is empowered
to impose fine on any banking company which may vary from ( ? ) to ( ? ) for each
failure.
a. One lakh rupees to Five lakh rupees b. One lakh rupees to Ten lakh rupees

c. 10 thousand rupees to one lakh d. Five lakh rupees to Ten lakh rupees
rupees
4 Utility bill taken for address proof should not be old for more than
a. One month b. Two month
c. Three month d. Six month
5 KYC Policy incorporates ____ key elements
a. 3 b. 4
c. 5 d. 6
6 In case address mentioned as per ‘proof of address’ undergoes a change, fresh proof of
address is to be submitted to the bank/FI within a period of
a. One week b. Two weeks
c. One month d. Six months
7 Information accompanying domestic wire transfers of Rs. ____ and above must include
complete originator information
a. All, irrespective of Amount b. Rs 50000/-
c. Rs 500000/- d. All option are incorrect
8 Banks /FIs may maintain records of the identity of the clients, and records in respect of
transactions in
a. Hard copy b. Soft copy
c. Hard copy and Soft copy d. Hard copy or Soft copy

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 MCQs ON Know Your Customer ( KYC)

9 If a customer abandons/aborts the transaction on being asked to give some details or to

provide documents, such attempted transactions should be reported in STRs. What is the
threshold for reporting?
a. Rs 10 lacs b. Rs 50000/-
c. Irrespective of Amount d. Rs 20 lacs and above
10 Who sends the list of individuals and entities subject to UN SANCTION?
a. Ministry of Home affair b. Ministry of External affair
c. RBI d. FIU-IND
11 Details of registration of companies should be verified through company master data from
Ministry of Corporate Affairs, GOI website
a. www.cma.gov.in b. www.mca.gov.in
c. www.cma.org.in d. www.cma.org.in
12 Who issues list of high risk countries in our bank ?
a. SBI, GMU, KOLKATA b. AML/CFT Department
c. RBI d. FIU (IND)
13 Non-Bank Financial Institution are categorized under ______risk customers
a. High b. Medium
c. Low d. As per turn over
14 It should be ensured that all new products are fully KYC compliant, existing products should
be reviewed at least once a year during the quarter
a. Jan to March b. April to June
c. July to September d. October to December
15 STRs are of two types
a. Subjective and Objective b. Subjective and System Generated
c. Objective and System Generated d. Objective and Manual
16 --------------------------------------are nominated as Dy. MLROs
a. Dy. General Manager (B&O) for CPCs and b. Assistant General Manager (Region) for
direct branches branches of the respective region
c. CM (Admin) d. Both a & b
17 Scrutiny of unusual transactions that may lead to suspicion should be done by................ for
cash transaction upto Rs. 50 thousand and transfer transactions upto 1.00 lac
a. Senior Astt. b. Special Asstt.
c. Senior special Asstt d. MOD/Service Manager/ BM

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 MCQs ON Know Your Customer ( KYC)

18 Scrutiny of unusual transactions that may lead to suspicion should be done by________for
cash transaction above Rs. 2.00 lac and transfer transactions above Rs. 5.00 lac
a. Senior Astt. b. Special Asstt.
c. Senior special Asstt d. MOD/Service Manager/ BM
19 Venture Capital companies are categorized under __________risk customers
a. Low b. Medium
c. High d. Not categorised any where
20 Asia Pacific Group on money laundering is headquartered at
a. Manila b. Bangkok
c. Beijing d. Kathmandu
21 Maximum penalty in addition to punishment for committing a Money Laundering Act is
a. Rs 15 lacs b. Rs 20 lacs
c. Rs 100 lacs d. No ceiling
22 CDD includes
a. Verification of Identity of the customer b. Obtaining required documents
c. Both a and b d. None of the above
23 For the purpose of verifying the identity of customers at the time of commencement of an
account-based relationship, banks/ FIs may rely on a third party. The ultimate responsibility
rest with
a. Bank/FI b. Third party
c. Customer d. All a , b and c
24 Cross border wire transfers of amount more than must be accompanied by accurate and
meaningful originator information
a. Rs 10 lacs b. Rs 50000/-
c. Rs 20 lacs and above d. All irrespective of amount
25 Records pertaining to the identification of the customers and their address obtained while
opening the account and during the course of business relationship are properly preserved
for at least five years after the ….................. under Rule 10 of the PML Rules
a. Business relationship is ended b. Opening of the account
c. Renewal of KYC d. All a, b and c
26 UAPA means
a. Unidentified Activities (Prevention) Act b. Unidentified Associations (Prev.) Act
c. Unlawful Activities (Prevention) Act d. Unidentified Associations (Prev )Act

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 MCQs ON Know Your Customer ( KYC)

27 Counterfeit Currency Report (CCR) should be submitted to FIU -IND by

a. 7th of the succeeding month b. Last day of the succeeding month
c. 10th of the succeeding month d. 15th of the succeeding month
28 A Shell company is
a. A company in a foreign country b. A company in a shell
c. A company that exist on paper only and d. An offshore Company
has no physical existence
29 Review of risk categorization of customer should be done periodically not less than
_________in six month
a. Once b. Twice
c. As and when required d. All a, b and c are incorrect
30 Punishment for offence of money laundering is
a. not less than 3 years but extendable up b. not less than 5 years but extendable up
to 7 years to 9 years
c. not less than 5 years but extendable up to d. not less than 3 years but extendable up
7 years to 5 years
31 The Unlawful Activities (Prevention) Act 1967 has been amended in 2008 for
a. Prevention of terrorist activities b. Prevention of money laundering
c. Prevention of and coping with d. Prevention of and coping with M.L.
Terrorist activities
32 FIU- Ind is headquartered at
a. Mumbai b. New Delhi
c. Banglore d. Chandigarh
33 The stage in which money is dispersed and disguised in the system is known as
a. Placement b. Layering
c. Integration d. Amalgation
34 Front companies are
a. Located usually in front of the commercial b. Not accepting cash or credits cards, as
centres they are concerned with incoming and
outgoing telex transfers only
c. Companies used by money launderers to d. None of these
hide the proceeds of illicit activities among
the banking deposits of those companies

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 MCQs ON Know Your Customer ( KYC)

35 In the context of Money Laundering, Red Flag means

a. A warning sign used to bring attention to b. A traffic Red signal where you have to
a potentially suspicious transaction / stop
activity
c. The standard flag of countries not d. None of these
cooperative in fighting money laundering
36 FIU- Ind is headquartered at
a. Mumbai b. New Delhi
c. Banglore d. Kolkata
37 In case, the match of any of the customers with the particulars of designated
individuals/entities is beyond doubt, the bank would prevent designated persons from
conducting financial transactions under information to
a. Joint Secretary (IS.I) MHA b. Jt. Secretary Ministry of External Affairs
c. RBI d. Joint Secretary, Ministry of Commerce
38 Telemarketers/ Auctioneer are categorized under ____________risk customers
a. High b. Medium
c. Low d. Very Low
39 Bullion dealers / jewellers are categorized under
a. High b. Very High
c. Low d. Medium
40 The AML/CFT Department is headed by
a. AGM (AML/CFT) b. DGM (AML/CFT)
c. GM (AML/CFT) d. CGM (AML/CFT)
41 FATF was established in the year
a. 1979 b. 1980
c. 1989 d. 2005
42 The stage of money laundering at which illicit money becomes indistinguishable from
legitimate funds and can be reinvested is called:
a. Placement b. Integration
c. Layering d. Structure
43 Cash Transaction Report to FIU-IND must be submitted
a. Fortnightly b. As when there is a transaction
c. Quarterly d. Monthly

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 MCQs ON Know Your Customer ( KYC)

44 STRs should be furnished within _____days or arriving at a conclusion that any transaction/
series of transactions is of suspicious nature
a. 3 b. 7
c. 15 d. 5
45 A designated email ID ____________ has been created to facilitate the branches to log in
the details of suspicious identified / attempted transactions
a. alerts.agm@sbi.co.in b. agm.alerts@sbi.co.in
c. alerts.dgm@sbi.co.in d. alert.dgm@sbi.co.in
46 CCR is to be sent manually, as and when any instance of detection of counterfeit currency is
observed to
a. GM (AML/CFT) b. CGM (BO)
c. MD ( IT/Risk/Subsidiaries) d. DGM ( B& O)
47 Where forgery of valuable security or documents have taken place report should be
furnished to FIU-IND in
a. Plain text form b. CCR
c. STR d. Security Report Form
48 Who is Designated Director of the bank under PMLA?
a. MD ( Retail and Digital Banking) b. M.D (Risk/IT/Subsidiaries)
c. CGM (B & O) d. Principal Officer
49 FATF is headquartered at
a. Paris b. Basel
c. London d. Washington
50 Primary responsibility of ensuring implementation of KYC/AML/CFT Policy and related
guidelines is vested with
a. GM (AML/CFT ) & Principal Officer b. Designated Director
c. CGM ( BO) d. Respective Business Groups/Circle/SBU
51 Whose responsibility is to verify and record his comments on the effectiveness of measures
taken by the branches/level of implementation of KYC guidelines
a. Officer in cahrge of Accounts b. Controlling authorities
c. Concurrent Auditor d. MOD
52 Which section of PMLA has defined the “offence of money laundering”?
a. Section 2 b. Section 3
c. Section 4 d. Section 5

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 MCQs ON Know Your Customer ( KYC)

53 When a bank/FI identifies a customer for opening an account it should identify the
beneficial owner and verify his identity. Where the client is trust and beneficial owner is the
trustee, the beneficiaries with ____% or more interest in trust should be identified
a. 5 b. 10
c. 15 d. 25

ANSWER SHEET
1 2 3 4 5 6 7 8 9 10
A B C B B D B D C C
11 12 13 14 15 16 17 18 19 20
B A B D B D A D B B
21 22 23 24 25 26 27 28 29 30
D C A D A C D C A A
31 32 33 34 35 36 37 38 39 40
C B A C A B A B A B
41 42 43 44 45 46 47 48 49 50
C B D B B B A B A D
51 52 53
A B C

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