Multiple Choice Questions

1. A ………………………….. can be defined as a bank which is

incorporated in a country where it has no physical
presence and is not affiliated to any regulated financial
group.

A.Cell Bank
B.Shell Bank
C.Mirror Bank
D.Pseudo Bank
1. A ………………………….. can be defined as a bank which is
incorporated in a country where it has no physical
presence and is not affiliated to any regulated financial
group.

A. Cell Bank
B. Shell Bank
C. Mirror Bank
D. Pseudo Bank
2. Which is the organisation that sets the global standards
for managing ML/TF/FC risks?

A. International Monetary Fund

B. The Wolfsberg Group
C. Basel Committee on Banking Supervision
D. Financial Action Task Force
2. Which is the organisation that sets the global standards
for managing ML/TF risks?

A. International Monetary Fund

B. The Wolfsberg Group
C. Basel Committee on Banking Supervision
D. Financial Action Task Force
3. FATF reviews periodically selected countries posing
high risk and having weak AML/CFT jurisdiction which
are grouped in _____Lists.

A. White & Red

B. Grey & Red
C. Red & Green
D. Black & Grey
3. FATF reviews periodically selected countries posing
high risk and having weak AML/CFT jurisdiction which
are grouped in _____Lists.

A. White & Red

B. Grey & Red
C. Red & Green
D. Black & Grey
4. FIU- IND reports to _________.

A. Central Bureau of Investigation

B. Financial Action Task Force (FATF)
C. Economic Intelligence Council headed by Finance
Minister
D. Reserve Bank of India
4. FIU- IND reports to _________.

A. Central Bureau of Investigation

B. Financial Action Task Force (FATF)
C. Economic Intelligence Council headed by Finance
Minister
D. Reserve Bank of India
5 Correspondent banking is defined as_____.

A. one bank providing banking services to another

bank.
B. A bank corresponds with another bank
effectively.
C. Query of one bank is responded to by another
bank under an arrangement.
D. None of the above
5 Correspondent banking is defined as_____.

A. one bank providing banking services to

another bank.
B. A bank corresponds with another bank
effectively.
C. Query of one bank is responded to by another
bank under an arrangement.
D. None of the above
6. What is meant by OFAC?

A. Office for Foreign Accounts and Control

B. Office of Foreign Assets and Control
C. Organisation for Foreign Accounts Control
D. Officially Funded Assets for Commission
6. What is meant by OFAC?

A. Office for Foreign Accounts and Control

B. Office of Foreign Assets and Control
C. Organisation for Foreign Accounts Control
D. Officially Funded Assets for Commission
7. Which one of the following parameters for risk
categorization is primary?

A. Caste & age

B. Educational qualification
C. Residence location - Rural, Urban of Metro
D. Occupation
7. Which one of the following parameters for risk
categorization is primary?

A. Caste & age

B. Educational qualification
C. Residence location - Rural, Urban of Metro
D. Occupation
8. What do you understand by UCIC?

A. Unique Customer Identification Code

B. Unique Customer Information Code
C. Unified Customer Identity Cell
D. Unique Codified Identity Card
8. What do you understand by UCIC?

A. Unique Customer Identification Code

B. Unique Customer Information Code
C. Unified Customer Identity Cell
D. Unique Codified Identity Card
9. FATCA is applicable to________.

A. US citizens (casually visiting India)

B. US persons (US citizens and / or persons residing in
US)
C. NRIs residing in Europe & UK
D. Indians citizens
9. FATCA is applicable to________.

A. US citizens (casually visiting India)

B. US persons (US citizens and / or persons residing
in US)
C. NRIs residing in Europe & UK
D. Indians citizens
10. Which OVD is mandatory for e-KYC procedure?

A. PAN – which can be verified online from Income Tax

website
B. Driving License – which can be verified from website
C. Voter ID – which can be verified from Election
Commission website
D. Aadhaar Card – which can be verified from UIDAI site
10. Which OVD is mandatory for e-KYC procedure?

A. PAN – which can be verified online from Income Tax

website
B. Driving License – which can be verified from website
C. Voter ID – which can be verified from Election
Commission website
D. Aadhaar Card – which can be verified from UIDAI site
11. Which one of the following is true in respect of CKYCR?

A. Customer will not be required to submit document to

other FIs repeatedly.
B. KYC updation will not be required periodically.
C. KYC document will be submitted to each FI only once.
D. Customer can change his address with other FIs as per
his current location.
11. Which one of the following is true in respect of CKYCR?

A. Customer will not be required to submit document to

other FIs repeatedly.
B. KYC updation will not be required periodically.
C. KYC document will be submitted to each FI only once.
D. Customer can change his address with other FIs as per
his current location.
12. Which one of the following functional unit is unlikely to
notice a likely suspicious transaction for reporting as STR?

A. Central processing unit for account opening,

B. A branch
C. Internal Audit function.
D. Regulatory returns function
12. Which one of the following functional unit is unlikely to
notice a likely suspicious transaction for reporting as STR?

A. Central processing unit for account opening,

B. A branch
C. Internal Audit function.
D. Regulatory returns function
13. Which of the following is not a function of a commercial
bank?

A. Registration of charges and mortgages

B. Transactions services
C. Asset transaction
D. Real-time Gross Settlement
13. Which of the following is not a function of a commercial
bank?

A. Registration of charges and mortgages

B. Transactions services
C. Asset transaction
D. Real-time Gross Settlement
14. Which of the following is a statutory regulation?

A. Guidelines from SEBI

B. Guidelines from RBI
C. Legislation under RBI act
D. Guidelines from IRDA
14. Which of the following is a statutory regulation?

A. Guidelines from SEBI

B. Guidelines from RBI
C. Legislation under RBI act
D. Guidelines from IRDA
15. Which one of the following is not compliance risk?

A. Violation of regulatory guidelines

B. Non-compliance of a legal provision
C. Overdues in credit portfolio
D. Non-adherence to the bank‘s internal policy
15. Which one of the following is not compliance risk?

A. Violation of regulatory guidelines

B. Non-compliance of a legal provision
C. Overdues in credit portfolio
D. Non-adherence to the bank‘s internal policy
16. Bank is required to nominate a Director on
their Boards, as per the provisions of the
Prevention of Money Laundering (Maintenance of
Records) Rules, 2005 (Rules). He is referred to as..

A. Whole Time Director

B. Designated Director
C. Principal Director
D. Nominated Director
16. Bank is required to nominate a Director on
their Boards, as per the provisions of the
Prevention of Money Laundering (Maintenance of
Records) Rules, 2005 (Rules). He is referred to as..

A. Whole Time Director

B. Designated Director
C. Principal Director
D. Nominated Director
17. Money Laundering is the process by which
money derived from ……………….. is so brought into
the financial system as to conceal its illicit origin and
to make it appear to be from licit origin.

A. Business
B. Liquor Trade
C. Criminal Activities
D. Foreign Remittance
17. Money Laundering is the process by which
money derived from ……………….. is so brought into
the financial system as to conceal its illicit origin and
to make it appear to be from licit origin.

A. Business
B. Liquor Trade
C. Criminal Activities
D. Foreign Remittance
18. “Politically Exposed Persons” (PEPs) are
individuals who are or have been entrusted
with prominent public functions. Which of the
following cannot be a PEP?

A. Prime Minister
B. Cabinet Secretary
C. Principal of a Govt College
D. Judge of Supreme Court
18. “Politically Exposed Persons” (PEPs) are
individuals who are or have been entrusted
with prominent public functions. Which of the
following cannot be a PEP?

A. Prime Minister
B. Cabinet Secretary
C. Principal of a Govt College
D. Judge of Supreme Court
19. Punishment for money-laundering offense in India is:

A. Up to 1 Year rigorous imprisonment with fine

B. Up to 2 Years rigorous imprisonment with fine
C. Up to 10 Years rigorous imprisonment with fine
D. Up to 7 Years rigorous imprisonment with fine
19. Punishment for money-laundering offense in India is:

A. Up to 1 Year rigorous imprisonment with fine

B. Up to 2 Years rigorous imprisonment with fine
C. Up to 10 Years rigorous imprisonment with fine
D. Up to 7 Years rigorous imprisonment with fine
20. Which of the following OVDs has an expiry date?

A. Voter's Identity Card issued by the Election

Commission of India
B. Aadhaar
C. Passport
D. Job card issued by NREGA duly signed by an
officer of the State Government
20. Which of the following OVDs has an expiry date?

A. Voter's Identity Card issued by the Election

Commission of India
B. Aadhaar
C. Passport
D. Job card issued by NREGA duly signed by an
officer of the State Government
21. How many digits are there in CKYCR unique
record?

A. 14
B. 12
C. 16
D. 11
21. How many digits are there in CKYCR
unique record?

A. 14
B. 12
C. 16
D. 11
22. What is meant by TBML?

A. Tangible Basis of Money Lending

B. Trader‘s Bank for Multiple Lending
C. Trade Basis for Money Laundering
D. Trade Based Money Laundering
22. What is meant by TBML?

A. Tangible Basis of Money Lending

B. Trader‘s Bank for Multiple Lending
C. Trade Basis for Money Laundering
D. Trade Based Money Laundering
23. Basic Money Laundering Cycle does not
include………………

A. Placement
B. Layering
C. Integration
D. Recycling
23. Basic Money Laundering Cycle does not
include………………

A. Placement
B. Layering
C. Integration
D. Recycling
24. FIU-IND uses information technology
system--------for online reporting by reporting
entities.

A. ITFIN
B. FINnet
C. FIUnet
D. Firep
24. FIU-IND uses information technology
system--------for online reporting by reporting
entities.

A. ITFIN
B. FINnet
C. FIUnet
D. Firep
25. -------------- has been set up under Ministry of
Corporate affairs for detecting and prosecuting or
recommending for persecution of white collar
crimes/frauds.

A. Serious Fraud Investigation Office

B. Serious Frauds Investigation Order
C. Service Fraud Investigation Office
D. Serious Funds Investigation Office
25. -------------- has been set up under Ministry of
Corporate affairs for detecting and prosecuting or
recommending for persecution of white collar
crimes/frauds.

A. Serious Fraud Investigation Office

B. Serious Frauds Investigation Order
C. Service Fraud Investigation Office
D. Serious Funds Investigation Office
26. Under CFT related set up which agency
has been set up for investigation of
offences related to terrorism?

A. FIU-IND
B. NIA
C. ED
D. None of these
26. Under CFT related set up which agency
has been set up for investigation of
offences related to terrorism?

A. FIU-IND
B. NIA
C. ED
D. None of these
27. Which of the following are modes for monitoring
transactions?

A. Observation based
B. Exception report based
C. AML software based
D. All the above
27. Which of the following are modes for monitoring
transactions?

A. Observation based
B. Exception report based
C. AML software based
D. All the above
Q28. Which of the following are typologies of
Suspected money laundering cases?

A. Multiple Shell entities

B. Common remitters
C. No economic rationale
D. All the above
Q28. Which of the following are typologies of
Suspected money laundering cases?

A. Multiple Shell entities

B. Common remitters
C. No economic rationale
D. All the above
29. What are money mules?

A. Hawala Transactions
B. Accounts having fraudulent transactions
C. Third parties who get paid for enabling access
to illegal funds by permitting use of their
accounts
D. Cyber Fraudsters
29. What are money mules?

A. Hawala Transactions
B. Accounts having fraudulent transactions
C. Third parties who get paid for enabling access
to illegal funds by permitting use of their
accounts
D. Cyber Fraudsters
30. Where the customer is a partnership firm, the
beneficial owner is the natural person(s), who, whether
acting alone or together, or through one or more
juridical person, has/have ownership of/entitlement to
more than ...........per cent of capital or profits of the
partnership.

A. 10
B. 15
C. 25
D. 30
30. Where the customer is a partnership firm, the
beneficial owner is the natural person(s), who, whether
acting alone or together, or through one or more juridical
person, has/have ownership of/entitlement to more
than ...........per cent of capital or profits of the
partnership.

A. 10
B. 15
C. 25
D. 30
31. Where the customer is an unincorporated association or
body of individuals, the beneficial owner is the natural
person(s), who, whether acting alone or together, or through
one or more juridical person, has/have ownership
of/entitlement to more than ............ of the property or
capital or profits of the unincorporated association or body of
individuals.

A. 15%
B. 20%
C. 25%
D. 50%
31. Where the customer is an unincorporated association or
body of individuals, the beneficial owner is the natural
person(s), who, whether acting alone or together, or through
one or more juridical person, has/have ownership
of/entitlement to more than ............ of the property or capital
or profits of the unincorporated association or body of
individuals.

A. 15%
B. 20%
C. 25%
D. 50%
32. In case of Non-Resident Indians(NRIs) and Persons of Indian
Origin(PIOs), as defined in Foreign Exchange Management
(Deposit)Regulations, 2016 {FEMA 5(R)}, alternatively, the original
certified copy, certified by any one of the following, may be obtained.
Which one of the following can not certify such document?

A. Authorized officials of overseas branches of Scheduled Commercial

Banks registered in India
B. Branches of overseas banks with whom Indian banks have
relationships
C. Indian Embassy/Consulate General in the country where the
nonresident customer resides
D. A retired IAS/IPS/IFS residing abroad
32. In case of Non-Resident Indians(NRIs) and Persons of Indian
Origin(PIOs), as defined in Foreign Exchange Management
(Deposit)Regulations, 2016 {FEMA 5(R)}, alternatively, the original
certified copy, certified by any one of the following, may be obtained.
Which one of the following can not certify such document?

A. Authorized officials of overseas branches of Scheduled Commercial

Banks registered in India
B. Branches of overseas banks with whom Indian banks have
relationships
C. Indian Embassy/Consulate General in the country where the
nonresident customer resides
D. A retired IAS/IPS/IFS residing abroad
33. V -CIP can be adopted in which of the following:
1.CDD of new customer
2.Periodic updating of KYC
3.Conversion of existing non face to face opened
accounts

A. 1 Only
B. 1 & 3 only
C. 1 & 2 only
D. 1, 2 & 3
33. V -CIP can be adopted in which of the following:
1.CDD of new customer
2.Periodic updating of KYC
3.Conversion of existing non face to face opened accounts

A. 1 Only
B. 1 & 3 only
C. 1 & 2 only
D. 1, 2 & 3
34. Who is responsible for overall compliance with the
obligations under PMLA and PML rules?

A. MD & CEO
B. Principal Officer
C. Designated Director
D. Chief Compliance Officer
34. Who is responsible for overall compliance with the
obligations under PMLA and PML rules?

A. MD & CEO
B. Principal Officer
C. Designated Director
D. Chief Compliance Officer
35. Cash Transaction Report (CTR) report will be sent if

A. Cash transactions of more than Rs 10 lakhs or its

equivalent in foreign currency
B. Cash transactions of more than Rs 5 lakhs or its
equivalent in foreign currency
C. Cash transactions of more than Rs 1 lakhs or its
equivalent in foreign currency
D. Cash transactions of more than Rs 50 lakhs or its
equivalent in foreign currency
35. Cash Transaction Report (CTR) report will be sent if

A. Cash transactions of more than Rs 10 lakhs or its

equivalent in foreign currency
B. Cash transactions of more than Rs 5 lakhs or its
equivalent in foreign currency
C. Cash transactions of more than Rs 1 lakhs or its
equivalent in foreign currency
D. Cash transactions of more than Rs 50 lakhs or its
equivalent in foreign currency
36. Cross Border Wire Transfer Reports (CWTR) will be sent if

A. All transactions involving receipts by ‘Non-Profit Organizations’

(Accounts) of value more than rupees one lakhs or its equivalent in
foreign currency
B. All transactions involving receipts by ‘Non-Profit Organizations’
(Accounts) of value more than rupees ten lakhs or its equivalent in
foreign currency
C. All transactions involving receipts by ‘Non-Profit Organizations’
(Accounts) of value more than rupees five lakhs or its equivalent in
foreign currency
D. All transactions involving receipts by ‘Non-Profit Organizations’
(Accounts) of value more than rupees fifty lakhs or its equivalent in
foreign currency
36. Cross Border Wire Transfer Reports (CWTR) will be sent if

A. All transactions involving receipts by ‘Non-Profit Organizations’

(Accounts) of value more than rupees one lakhs or its equivalent in
foreign currency
B. All transactions involving receipts by ‘Non-Profit Organizations’
(Accounts) of value more than rupees ten lakhs or its equivalent in
foreign currency
C. All transactions involving receipts by ‘Non-Profit Organizations’
(Accounts) of value more than rupees five lakhs or its equivalent in
foreign currency
D. All transactions involving receipts by ‘Non-Profit Organizations’
(Accounts) of value more than rupees fifty lakhs or its equivalent in
foreign currency
37. Cross Border Wire Transfer Reports (CWTR) will be sent if

A. All cross border wire transfers of the value of more than

fifty lakh rupees or its equivalent in foreign currency
B. All cross border wire transfers of the value of more than
one lakh rupees or its equivalent in foreign currency
C. All cross border wire transfers of the value of more than
ten lakh rupees or its equivalent in foreign currency
D. All cross border wire transfers of the value of more than
five lakh rupees or its equivalent in foreign currency
37. Cross Border Wire Transfer Reports (CWTR) will be sent if

A. All cross border wire transfers of the value of more than

fifty lakh rupees or its equivalent in foreign currency
B. All cross border wire transfers of the value of more than
one lakh rupees or its equivalent in foreign currency
C. All cross border wire transfers of the value of more than
ten lakh rupees or its equivalent in foreign currency
D. All cross border wire transfers of the value of more than
five lakh rupees or its equivalent in foreign currency
38. Which of the following products come under
High risk category?

A. Cash Credit, Project Loan

B. Term Loan
C. Credit Cards
D. Fixed Deposits
38. Which of the following products come
under High risk category?

A. Cash Credit, Project Loan

B. Term Loan
C. Credit Cards
D. Fixed Deposits
39. Which of the following products come
under medium risk category?

A. Non-resident FD
B. Demand Loan only
C. Credit Cards
D. All the above
39. Which of the following products come
under medium risk category?

A. Non-resident FD
B. Demand Loan only
C. Credit Cards
D. All the above
40. Factors impacting ML/TF risks are :
1.Customers
2.Delivery channels
3.Locations
4.Products

A. 1 & 3 only
B. 1, 2 & 3 only
C. 1, 2, 3 & 4
D. 1, 3 & 4
40. Factors impacting ML/TF risks are :
1.Customers
2.Delivery channels
3.Locations
4.Products

A. 1 & 3 only
B. 1, 2 & 3 only
C. 1, 2, 3 & 4
D. 1, 3 & 4
41. Customer risk profiles consists of :
1. Entity parameters
2. Activity parameters
3. Linkage parameters
4. Media reports

A. 1 & 2 only
B. 1, 2, 3 & 4
C. 1 & 4 only
D. 3 & 4 only
41. Customer risk profiles consists of :
1. Entity parameters
2. Activity parameters
3. Linkage parameters
4. Media reports

A. 1 & 2 only
B. 1, 2, 3 & 4
C. 1 & 4 only
D. 3 & 4 only