Q.

1What is meant by pooled accounts

A pooled account is a fiduciary account having investments from multiple individuals which is pooled
together.

Q.2List some parameters for enhanced due diligence

The parameters for enhanced due diligence is: Customer location, financial status, Nature of business or
Purpose of transaction

Q.3What is meant by KYC Policy

All banks need to have a KYC policy as mandated by RBI, in India. The KYC policy lists Customer
Acceptance Policy, Customer Identification Procedures, Monitoring of Transactions and Risk
Management.

Q.4Describe the Customer Acceptance Policy in AML/KYC

The customer acceptance policy is guidelines to be followed for account opening by the customer. The
policy enlists documents needed for identity and other mandated customer characteristic.

Q.5Explain the customer identification procedure in AML/KYC

The customer identification procedure is the process of identifying the customer by documents and
available information so as to be compliant to AML/KYC laws as mandated by Government.

Q.6How will you identify suspicious transactions

Suspicious transactions can be identified by observation, analysis of Exception Reports and by using AML
Software.

Q.7What can be a ground for a transaction to be suspicious transaction

There are various grounds for a transaction to be suspicious transaction, some common ones are: False
Identity, Wrong Address or Doubt over the real beneficiary of the account.

Q.8What is meant by Name screening?

Name screening refers to ascertain if any customer of the institution is part of any blacklists or regulatory
lists.

Q.9Who can be regarded as a customer for the purpose of KYC?

A customer is: individual or a company which maintains an account, establishes relationship, or on

whose behalf account is maintained or beneficiary of accounts maintained by intermediaries.

Q.10When is induction training provided to employees?

Induction training is provided to employees at the start of their employment. Induction training is a form
of introduction for new starters in order to enable them to do their work in a new profession or job role
within a business (or establishment).
Q.11What BR Act, 1949 contains?

It contains AML/KYC Guidelines.

Q.12CTR stands for?

Cash transaction report as per PMLA.

Also referred as currency transaction report

Q.13What do you mean by Money Laundering?

Money laundering is the process of concealing the source of money obtained by illicit means such as
gambling, corruption, extortion, drug trafficking, human trafficking, etc., Money is moved around the
financial system again and again in such manner that its origin gets hidden. It is the process of making
dirty money clean.

Q.14Please read the KYC practice given below. Identify the KYC element which best relates to the
stated practice. Effective information-gathering strategies enable building of a solid information base
about each customer. This is known as ______________.

Customer identification, It involves effective information-gathering strategies enable building of a solid

information base about each customer. Banks are required to clearly spell out the Customer
Identification Procedure to be carried out at different stages i.e. while establishing a banking
relationship; carrying out a financial transaction or when the bank has a doubt about the
authenticity/veracity or the adequacy of the previously obtained customer identification data.

Q.15What are the objectives of KYC?

The objectives of KYC is to ensure appropriate customer identification, Monitor transactions of

suspicious nature.

Q.16What are the stages of money laundering?

The three stages of money laundering are Integration, Layering, Placement.

Q.17What is money laundering?

Money laundering refers to the process of making illegally obtained funds appear legitimate by
disguising their true origin and making them appear as if they came from legitimate sources.

Q.18What are the three stages of money laundering?

The three stages of money laundering are placement, layering, and integration. Placement involves
introducing illicit funds into the financial system. Layering involves complex transactions to obscure the
money's origin. Integration is the final stage where the laundered funds are reintroduced into the
legitimate economy.
Q.19What are some red flags or indicators of potential money laundering activity?

Red flags include frequent large cash deposits or withdrawals, unusually complex transactions,
transactions involving high-risk jurisdictions, inconsistent or false documentation, and a lack of business
rationale for certain transactions.

Q.20What is the role of the AML-KYC professional in combating money laundering?

AML-KYC professionals play a crucial role in preventing money laundering by conducting due diligence on
customers, monitoring transactions for suspicious activity, implementing and updating AML policies and
procedures, and reporting any suspicious transactions to the appropriate authorities.