KYC AML (L0904)

A company which does not have active business operations or signicant assets and is normally used to disguise business ownership from Law
Enforcement Agencies or public.
A) Un-listed Company
B) Listed Company
C) Shell Company
D) Limited Liability Company
A State Government employee maintaining Salary Package Account with your branch. His net salary credit into the account is more than
Rs.150,000/- p.m. and credit / debit summation together is Rs.35.00 lacs in a nancial year. He maintains total deposit of Rs.160.00 lacs in your
branch in one CIF. As per risk categorisation, what is the risk to be assigned to the customer and at what periodicity risk updation is to be
carried out?
C) The customer shall be categorised as High risk customer, as the customer maintains deposit of more than Rs.150.00 lacs (HNI).
The risk updation shall be carried out once in 2 years.
As a Risk Management measures, the banks are required to categorise all individual and non-individual customers as Low, Medium and High
Risk based on certain parameters as stipulated in KYC policy. Which of the following is not a parameter based on which risk categorisations are
carried out.
A) Customer s identity
B) Age of the customer
C) Nature of business activity
D) Social / financial status
A customer has opened an account based on a self-attested photograph and by obtaining his signature or thumb impression on account
opening form in presence of a authorised officer of the Bank. The customer could not submit OVDs during the 12 months of the opening of the
account. Which of the following is correct with regard to continuation of the account beyond 12 months?
Ans: The account shall remain operational after a period of twelve months for a further period of twelve months, provided the account holder
applies and furnishes evidence of having applied for any of the OVDs during the first twelve months of the opening of the said account.
A private limited company with shareholding of A, B, C & D are 45%, 35%, 10% and 10% respectively. B & C who manage the day to day
operations of the company, want to open an account with your branch. They have submitted all the required documents including board
resolution authorising both of them as POA holder to transact on behalf of the company. Which of the following is the correct option with regard
to CCD procedure?
A) Copies of the OVDs, containing details of his identity and address, one recent photograph and PAN / Form 60 in respect of all shareholders
shall be obtained.
B) Copies of the OVDs, containing details of his identity and address, one recent photograph and PAN / Form 60 in respect of persons holding
attorney on behalf of company i.e. both B & C, shall be obtained.
C) Copies of the OVDs, containing details of his identity and address, one recent photograph and PAN in respect of A, B & C shall be
obtained. As per share holding, A is a benecial owner, B is both benecial owner and POA holder and C is a POA holder.
D) Copies of the OVDs, containing details of his identity and address, one recent photograph and PAN / Form 60 in respect of A and B shall
only be obtained. As per share holding, A and B are the benecial owner and
A student from Nigeria studying in IIT where SBI has a campus branch. The student came to the branch for opening a Saving Bank account and
submitted copy of his passport (with appropriate visa & immigration endorsement) bearing the proof of identity and address in the home country
along with a photograph and a letter of admission from the IIT. But he is unable to provide proof of local address. As a branch manager of that
campus branch, what would be your action and what variants of account can be opened for NRI student?
D) NRO account may be opened with a declaration to be obtained about the local address within a period of 30 days of opening the
account and the said local address shall be veried, till such time there will be certain limitation in transactions.
Authenticity of PAN Card may be checked with
Ans: CBDT Website
Bank's risk based approach on AML/CFT is applicable
A) only for individual customer
B) only for non-individual customer
C) both for individual as well as non individual customer
D) only for non-face to face individual customers
Banks are required to maintain all necessary records of transactions between the bank and the customer, both domestic and international, for at
least ________ years from the date of transaction.
Ans: Five
Branches are required to send hard copies of duly completed AOFs of NRI customers with enclosures (KYC documents etc) to
Ans: Global NRI Centre (GNC)
Carousel Fraud refers to
Ans(B): A web of transaction, circular transaction or round tripping by Importing goods from non VAT country, selling it in importing
country by adding VAT and not paying VAT to the government
Customer Acceptance policy should not be so restrictive that it will result in denial of banking facility to members of general public especially
those who are from the
A) Minority community
B) Financially disadvantaged section of the society
C) Socially disadvantaged section of the society
D) Both socially and nancially dis-advantaged section of the society
Enhance due diligence procedures are to be carried out in respect of which of the following categories of the customers while establishing an
account based relationship? i) None face to face customers ii) Politically Exposed Person and their their Family iii) Client Account opened by
professional intermediaries iv) NRI Customers
Ans: i) ,ii), iii)
For opening an account in respect of HUF, which of the following is incorrect with regard to obtention of documents?
A) Registered HUF Deed
B) Prescribed Joint Hindu Family Letter signed by all the adult coparceners.
C) PAN OR Form 60 of the HUF
D) Declaration from the Karta
For accounts of minor , wherever PAN of minor is not available
A) PAN of the parent/guradian to be obtained
B) Form 60 is to be obtained which shall be signed by Parent/Guardian only
C) Form 60 is to be obtained which shall be signed by the minor only
D) Form 60 is to be obtained which shall be signed both by Parent/Guardian and the minor
In which of the following instances, the banks are not required to carry out the Customer Identication Procedure (CIP)?
A) While carrying out any international money transfer operations for a person who is not an account holder.

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B) While establishing a banking relationship with a customer.
C) When the Branch has reason to believe that a customer (existing or walk-in) is intentionally structuring a transaction into a series of
transactions below the threshold of Rs. 50,000/-.
D) While selling third party products as agents, payment of dues of credit cards and reloading of prepaid / travel cards and any other
product for less than Rs.20,000/-
In terms of rules of Prevention of Money Laundering Act 2002, banks are obliged to file reports on transaction to _______
Ans: Financial Intelligence Unit- India(FIU IND)
In terms of PML Amendment Act 2012, banks should maintain for at least __________years from the date of transaction between bank and
client
Ans: 5
IT department sought some documents related to a customer of your branch. After enquiry, you found that the account has been closed six
months before. Accordingly you have advised the IT department that no documents are available with the branch as the customer has closed
his account. Which of the following instruction is incorrect with regard to retention of records as per PMLA.
A) Bank shall maintain all necessary records of transactions between the bank and the customer, both domestic and international, for at least
five years from the date of transaction
B) Bank shall preserve the records pertaining to the identification of the customers obtained while opening the account and during the course of
business relationship, for at least ten years after the business relationship is ended
C) Bank shall preserve the records pertaining to the identification of the customers obtained while opening the account and during
the course of business relationship, for at least five years after the business relationship is ended
D) Bank shall make available the identification records and transaction data to the competent authorities upon request
Karta of a HUF wanted to open an account, he has submitted following documents along with Account opening form. (1) PAN of the HUF, (2)
Photograph, PAN, ID & Address proof of Karta. Which of the following is not the documents that need to be submitted by the HUF.
A) Declaration of the Karta that the depositor is the Karta of the joint family and the deposit belongs to HUF.
B) OVD towards identity proof of the adult coparceners.
C) Joint Hindu Family letter (COS-38) signed by all adult coparceners.
D) Declaration signed by all the co-parceners providing their consent for opening of account
KYC is
A) a One time process
B) to be cariied out every 5 years
C) to be carried out every 10 years
D) an ongoing process
List of banned organisation is circulated by
Ans: RBI
CKYCR stands for
Ans: Central KYC Registry
Money Laundering in India is ?
A) A top regulatory and enforcement priority and is civil offence when the proceeds are used only in India
B) A top regulatory and enforcement priority and is Criminal offence when used for financing terrorism
C) A top regulatory and enforcement priority and is civil offence in all cases.
D) A top regulatory and enforcement priority and is Criminal offence
Name the software used for the purpose of generating Suspicious Transaction Reports (STR) based on predetermined scenarios and
thresholds xed by the Bank.
Ans: AMLOCK
Name the Customer Identification Process recently notified by undertaking consent based audio-visual interaction with the customer to
complete Customer Due Diligence (CDD) procedure.
Ans: V-CIP
Non face to face customers' account means
Ans: Account of those with whom the branch has not had direct interaction at the time of opening the account
Office of the General Manager & Principal Ocer (AML/CFT) is located at
Ans: Jaipur
Office bearers (President, Secretary and Treasurer) of a Self Help Group consisting of 10 members already having a saving account in your
branch comes for Credit linkage with all relevant papers including resolution passed by all members granting attorney to the office bearers to
act and transact on behalf of the SHG. The account opening officer insists for submission of KYC documents of all the members and their
presence in the branch in person. As a Branch Manager, How would you guide your officer?
A) Separate CDD at the time of credit linking of SHGs is not required (since KYC would have already been verified while opening the savings
bank account) provided the account continues to be in operation and there is no change in office bearers.
B) Agree with the Account Opening Officer s view that even at the time of credit linkage in an existing saving account of SHG, KYC documents
of all the members and their presence in the branch in person is required.
C) At the time of extending credit linkage in an existing savings account of SHG, besides KYC documents of all the members, a certicate from
Sarpanch or head of the Janpad Panchyat evidencing the formation of SHG is to be submitted
D) At the time of extending credit linkage in an existing savings account of SHG, besides KYC documents of all the members and
their physical presence, a certicate from Sarpanch or head of the Janpad Panchyat evidencing the formation of SHG is to be
submitted
RBI has specified Know Your Customer (KYC) standards and measures to be followed by Banks to be taken in regard to
A) Anti Money Laundering Only
B) Combatting of Financing of Terrorism only (CFT)
C) Both Anti- Money Laundering and Combatting of Financing of Terrorism
Partial Freezing is not to be appilied on
A) Savings Bank Account
B) Loan account
C) Current Account
D) It is applied on all accounts
TBML stands for
A) Trade Based Money Layering
B) Trade Based Money Lending
C) Trac Based Money Lifting
D) Trade Based Money Laundering
TBML could be prevented by adopting basic principles of
A) Customer Due Deligence only
B) Customer Identication Procedure only

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C) Both Customer Due Deligence & Customer Identication Procedure
D) Customer Relationship Procedure only
There are some KYC non-compliant accounts in your branch. You have sent several reminders / notices, the account holders are not
responding to the notices. You decided to freeze the accounts partially. Which of the following is not correct with regard to partial freezing of
accounts?
A) If the notice is returned with postal remarks (non-available in house), (house locked), (shop closed) or due to a refusal to accept the notice,
the same would be a deemed service of the notice
B) If the account remains KYC non-compliant, Partial freeze to be imposed after three months from date of first notice, by allowing all credits but
disallowing all debits, if the account remains KYC non-compliant
C) During the course of such freeze, an account holder cannot revive his / her account by submitting the KYC. After submission of
KYC, the branch can close and pay the balances if any to the account holder
D) If the customer chooses to close the account, he / she may be permitted to do so, after establishing his / her identity
The cut-off limit for monitoring transactions is
A) All transactions above Rs.10 lakhs
B) All transactions of suspicious nature (irrespective of amount)
C) All transactions above Rs 5 lakhs
D) All transactions above Rs.1 lakhs
The directors of a newly constituted private limited company has come to your branch for opening a current account. What are the documents
are to be obtained along with account opening forms? Please choose the best answer
A) (i) Certicate of Incorporation, (ii) Memorandum and Articles of Association, (iii) PAN of company or Form60, (iv) A resolution from the Board
of Directors.
B) (i) Certicate of Incorporation, (ii) Memorandum and Articles of Association, (iii) PAN of company, (iv) A resolution from the Board
of Directors and (v) photograph, identity and address, PAN of authorised signatories and benecial owners
C) (i) Certicate of Incorporation, (ii) Memorandum and Articles of Association, (iii) PAN of company or Form60, (iv) A resolution from the Board
of Directors and (v) photograph, identity and address, PAN of authorised signatories
D) (i) Certicate of Incorporation, (ii) Memorandum and Articles of Association, (iii) PAN of company or Form60, (iv) A resolution from the Board
of Directors and (v) photograph, identity and address, PAN of authorised signatories and benecial owners
The Agency set by GOI as the central national agency responsible for receiving, processing, analyzing and disseminating information relating to
suspicious -financial transactions
Ans: FIU-IND
The master directions on Know Your Customer (KYC) standards framed by RBI are based on certain guidelines. Which of the following is not
one of the guidelines on which it is based?
A) Obligations cast on banks as per provisions of the Prevention of Money Laundering Act (PMLA), 2002
B) Recommendations made by the Financial Action Task Force (FATF) on AML standards and CFT
C) As per Prevention of International Terrorism Act of United States
D) Customer Due Diligence (CDD) to be followed by banks as stipulated by the Basel Committee on Banking Supervision
To whom are the provisions of the KYC, AML and CFT policy applicable?
A) All domestic branches
B) Foreign branches and majority owned overseas subsidiaries of the bank
C) All domestic branches and Foreign branches and majority owned overseas subsidiaries of the bank
D) All domestic branches and Foreign branches
To whom are the provisions of the KYC, AML and CFT policy applicable?
A) All domestic branches
B) Foreign branches and majority owned overseas subsidiaries of the bank
C) All domestic branches and Foreign branches and majority owned overseas subsidiaries of the bank
D) All domestic branches and Foreign branches
What is the bank's instruction regarding issue of ATM card in case of Small Account .
A) No ATM Card can be issued in Small Accounts.
B) The bank can issue Rupay ATM card and the customer is allowed to do limited number of transactions
C) ATM cards can be issued only after compliance of the account into KYC compliant.
D) Any ATM card may be issued sublect to certain limitation in number of transactions.
What type of account can be opened for Foreign Students Studying in India?
Ans: Non- Resident Ordinary (NRO)
When a customer submits proof of possession of Aadhaar voluntarily for identication purpose but declines to undergo biometric based e-KYC
authentication, such Aadhaar may be veried through _______
A) Digital KYC
B) V-CIP
C) Offline Verification of KYC
D) Verification is not possible in such case
Which one of the following is not one of the red flag indicatior to detect TBML in regard to customer profie?
A) The customer avoids or does not co-operate in CDD procedures
B) The customer is overly keen to waive discrepancies
C) The transaction commensurates with known customer profile, structure or business
D) The customer significantly deviates from his historical pattern of trade activity
Which of the following report banks are not required to send to FIU IND
A) Cash Transactions Reports
B) Counterfeit Currency Reports
C) Suspicious Transaction Report
D) KYC non updation report
Which of the following is not one of the stages of money laundering?
A) Layering
B) Integration
C) Placement
D) Phishing
Which of the following is not one of the four elements of KYC / AML / CFT Policy?
A) Risk Management
B) Customer Identication Procedures
C) Customer Segmentation Procedure
D) Customer Acceptance Policy
Which among the following is not one of the limitations associated with a Small Account?
A) The aggregate of all credits in a nancial year should not exceed rupees one lakh.
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B) The aggregate of all withdrawals and transfers in a month should not exceed rupees ten thousand.
C) The balance at any point of time should not exceed rupees fty thousand.
D) The aggregate of all credits in a month should not exceed rupees ten thousand.
Whenever marking Hold / Stop after complying with Bank's extant instructions in any account due to fraudulent reasons you are simultaneously
required
A) To report such action to your Controller at RBO
B) To submit Suspicious Transaction Report to Principal Ocer, AML-CFT Deptt, CC,Jaipur using online reporting utility available in CBS.
C) Information of such action is recorded in CBS hence no reporting is re-quired.
D) Both (i) & (ii) are correct.
Which of the following is not one of the broad guidelines in respect of the customer acceptance policy of the bank?
A) No account is opened in anonymous or ctitious / benami name
B) No account is opened where the Branch is unable to apply appropriate CDD measures, either due to noncooperation of the customer or non-
reliability of the documents / information furnished by the customer
C) No transaction or Opening of account is undertaken without following the CDD procedure
D) Customer Acceptance Policy is only applicable for Non Face to Face Customers.
Which of the following types of customers are not categorised as High Risk customers?
A) Non-Bank Financial Institution
B) Multi-Level Marketing Companies
C) Trust Charities, NGOs & Organizations receiving donations from India & abroad
D) Individual Account holder with Credit/debit summations of Rs.2.00 crores & more per annum
Which of the eligibility criteria is correct in regard to opening of accounts though YONO
A) PAN is mandatory for Digital Savings account whereas it is optional for Regular Savings Bank Account
B) PAN is mandatory for Regular Savings account whereas it is optional for Digital Savings Account
C) PAN is mandatory for both Digital Savings account and Regular Savings Bank Account
D) PAN is niether manadatory for Digital Savings account nor for Regular Savings Bank Account
Which of the following is not considered a trigger for identifying a suspicious transaction?
A) A low amount transaction which gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specied in the Act.
B) A transaction which appears to be made in circumstances of unusual or unjustied complexity.
C) A very high value remittance received from abroad which appears to have economic rationale.
D) A transaction which gives rise to a reasonable ground of suspicion that it may involve nancing of the activities relating to terrorism.
Which amongst the following is not a high risk industry from TBML perspective
A) Precious Gems Dealer
B) Precious Metal Dealers
C) Sugar Industry
D) Cargo Services
Which of the following is not prudent action in regard to TBML
A) Do due diligence on the transaction and counter parties
B) Be familiar with regulations and TBML methodologies
C) In case of suspicion, alert the customer about TBML
D) File STR diligently
Which amongst the following is not a fake Trade Finance Instrument used for TBML
A) Fraudulent alteration of the Bill of Lading
B) shipment of counterfeits goods in guise of actual goods
C) LC utilization to move illicit or restricted goods and commodities
D) Forward Purchase/Sale Agreement
Which of the following is not one of the commonly used techniques in TBML
A) Multiple Invoicing
B) Part Invoicing
C) Over Invoicing
D) Under Invoicing
While Aadhaar authentication through e-KYC at the time of opening an account, SWO observed that the current address provided by the
customer is different from the address contained in Aadhaar records. The SWO comes to you for guidance. As a Branch Manager, what would
be your guidance to the SWO?
A) An OVD containing current address must be obtained as proof of address without which no account shall be opened.
B) A self-declaration may be obtained from the customer to that effect and such current address may be entered in CBS.
C) Ask the customer to make necessary changes in address in Aadhaar records by visiting Aadhaar enrolment centre. Till such corrections, no
account shall be opened.
D) Ask the customer to close the account.
Who is the designated 'Principal Officer' for KYC / AML / CFT matters who shall be responsible for all reporting / communications with the FIU-
IND.
A) Managing Director (R&DB), Corporate Centre
B) Deputy Managing Director (R&DB), Corporate Centre
C) General Manager (AML/CFT), Jaipur
D) CGM of the Circle
Who is authorised to act as repository for KYC related information and to perform the functions of CKYCR?
A) CERSAI
Who can be treated as beneficial owner in respect of a Partnership firm?
A) The natural person or juridical person has ownership of / entitlement to more than 25 per cent of capital or profits of the partnership
B) The natural person or juridical person has ownership of / entitlement to more than 50 per cent of capital or profits of the partnership
C) The natural person or juridical person has ownership of / entitlement to more than 15 per cent of capital or profits of the
partnership
D) The natural person or juridical person has ownership of / entitlement to more than 20 per cent of capital or profits of the partnership
What are the periodicity of risk grade updation in respect of Low, Medium and High risk customers?
D) 10 yrs / 8 years / 2 years
Within how many days after the commencement of an account based relationship with a customer, Bank is required to file the electronic copy of
the Customer's KYC records / data with the Central KYC Records registry (CKYCR)?
Ans: 3 days

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