Professional Documents
Culture Documents
Sr Particulars
N
o
1. Money Laundering means -
a) Conversion of assets to invest in Laundromats
b) Conversion of money which is illegally obtained to make them
legitimate
c) Conversion of cash into gold to make them legitimate
d) Conversion of assets into cash to make them legitimate
(KYC in banks is primarily designed to address money laundering and only its
non-implementation can lead to compliance risk.)
3. When banks sell third party products (such as insurance, mutual funds etc) as
agents, the responsibility for ensuring compliance with KYC/AML/CFT
regulations .
a) lies with the bank marketing the product
b) lies with the third party issuer
c) lies with both the bank as well as the third party issuer
d) depends on whether the customer pays the money in cash or
otherwise
e) depends on whether the customer is a walk-in customer
4. Under the KYC guidelines, banks need to conduct EDD - Enhanced due
diligence in all the following cases except in case of .
a) Correspondent accounts.
b) Non-face-to-face customers.
c) Firms with sleeping partners
d) Trustees, Nominees, and Fiduciaries.
e) Personal customers with small deposits.
6. As per FIU guidelines the records of all information on identity of clients are
required to be maintained by every reporting entity for a period of .. year (s)
from the date of cessation of the relationship with their clients.
a) One
b) Two
c) Three
d) Five
e) Ten
(Barring Marketing all others are core functions and cannot be outsourced as
per RBI guidelines)
11. The cut-off limit of Rs. 10 lacs and above for aggregate cash deposits for
reporting to FIU is
a) Per day
b) Per month
c) Per quarter
d) Per half-year
e) Per year
13. In an account is classified as high risk, the fresh KYC documents are be
obtained after years
a) 10 years
b) 8 years
c) 3 years
d) 2 years
Sr Particulars
N
o
14. As per KYC guidelines, which one of the following customers is having high
risk?
a) Central Govt. employee
b) State Govt. employee
c) Bank employee
d) Small business man
e) Politically exposed person resident abroad.
15. In which of the following cases it is not necessary to identify and verify the
beneficial owners as per the KYC Norms of RBI where
a) The client is a partnership firm
b) The client is an unincorporated association
c) The client is an unincorporated body of individuals
d) The client is a trust
e) The client is a company listed on a stock exchange