KYC AML Mcq:
1.The amount beyond which cash transactions (Receipts & Payments) are to be monitored by the Commercial Banks as stipulated by the RBI in
its guidelines is -
A.Rs.5 lacs & above B. Rs.8 lacs & above C. Rs.10 lacs & above D. No such limit
2. Submission of details of PAN (Permanent Account Number) is compulsory for Fixed Deposits, Remittances, such as, DDs / TTs/ Rupee TCs,
etc., if the amount exceeds –
A. Rs.10,000/- B. Rs.25,000/- C. Rs.50,000/- D. No such limit
3. Branches should not open deposit/advances accounts of banned/ terrorist organisations as circulated by -
A.IRDA B. SEBI C. AMFI D. FIU
4. FCRA means - Foreign Contribution Regulation Acta
5. Maximum punishment by way of imprisonment for the offence committed under Money Laundering Act is -
A. 7 years B. 9 years C. 10 years D. 12 years
6. “Smurfing” means -
A. large number of cash deposits into same account
B. one voucher for high value deposit
C. low value denominations of cash D. None of the above
7. The objective of verifying the employee life-styles by the employer is -
A. to know the source of income
B. to ascertain whether the employee is having any contacts with illegal organisations
C. to ascertain whether the employee is assisting organisations banned by statutory authorities D. All of these
8. Role of the concurrent auditors / Internal auditors with KYC is to -
A. Review of compliance of KYC guidelines
B. Effectiveness of the implementation of the KYC
C. Verification of newly opened accounts and their transactions
D. All of the above
9. Strict adherence to KYC norms is achieved through -
A. following the statutory authority guidelines
B. identification of customers with appropriate documents
C. strict Implementation of the Banks Systems and procedures while opening the accounts
D. All of the above
10.Name the software available in the market for KYC implementation -
A. Bank Master B. Tally C. Bank Alert D. Bank Call
11. Which of the following transactions is/are not consistent with a salaried customer’s account?
A. Frequent deposits of cash in large sums by third parties
B. Deposit of cheques issued by foreign companies
C. High value transactions routed through the account with high frequency
D. All of the above
12. Which of the following transactions is/are suspicious from AML angle -
A. Large volume of credits happen through DDs/TTs/BC etC.,
B. Deposit of several small values of cheques
C. Frequent deposits of cash into the account by persons other than the account holder or his authorised representative
D. All of the above
13. While accounts are transferred from one branch to another, the receiving branch is expected to comply with KYC Norms. Which one of the
following is/are correct in this regard?
A. Detailed verification of Customer Profile as received from the earlier branch is to be done with caution
B. Detailed verification is not needed but the account is opened immediately and informed to the customer
C. Fresh details are to be obtained and a fresh customer profile is to be prepared
D. No transaction is to be permitted for the first six months till the customer is fully know to the bank
14.One of the sources that is available to identify the correctness of the information given by the New Customer of the Commercial Bank is -
A.Introduction given by the existing customer of the Bank
B. By studying the account opening form
C. By providing information by the agencies like CRISIL
D. None of the above
15. Which of the following is a source of identification of new customer who is not having any valid documents such as, passport, etC.
A. Introduction from the third person having an account with the bank /branch
B. Introduction given the Safe deposit locker holder of the bank
C. Self–declaration given by the new customer along with other opening forms
D. None of the above
16. Is India a member of FATF?
A. Yes B. No C. Has applied for inclusion D. Is likely to be made a member
17. Is adopting Anti Money Laundering practices compulsory for Banks in India?
A. Yes B. No C. Not Sure D. Will be made compulsory soon
18. Letter of thanks is sent to introducer/s because it is -
A. laid down in the banks’ manual
B. a routine practice followed by banks for years
C. recommended by the Auditors of banks
D. assisting banks in verification of genuineness or otherwise of the address
19. Which of the following is the cardinal rule for bankers in anti-money laundering efforts -
A. Know Your Customer & Know Your Employee
B Know the Customer of the other Banks
C. Know the income of the Customers of your Bank
D. Know the Assets Position of the customers of the Bank
20. 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
21. While opening an account in the name of a company, the following document/s is/are to be obtained -
A. Organisation Chart of the company
B. Roles and responsibilities of the Company
C. Memorandum and Articles of Association of the Company
D. Instructions of the Registrar of the Compan
22. How many recommendations were made by FATF on anti money laundering -
A. 65 recommendations B. NIL C. 40 recommendations D. Yet to be finalised
23. For opening accounts in the case of Joint Hindu Undivided Family (JHUF), the following document/s is/are important -
A. Declaration of all family members
B. Declaration of the Karta of the family
C. Declaration of all guardians on behalf of minors
D. Declaration can be exempted as per Hindu Succession Act
24. While opening an account in case of partnership firm, one of the vital document to be produced by the firm is -
A. Partners MOU B. Partnership Deed
C. Registration certificate of Partnership D. Signatures of the partners
25. Cash cannot be accepted for issue of DDs/TTs/Rupee TCs from the customers for Rs. ____
A. Rs.50,000/- & above B. Rs.75,000/- & above
C. Rs.1,00,000/- & above D. Rs.1,50,000/- & above
26. The branches of commercial banks should report suspicious transactions to -
A. Bank’s respective authority B. RBI C. Ministry of Finance D. None of the above
27. Maximum punishment by way of imprisonment for the offence committed under Money Laundering Act is -
A. 7 years B.9 years C. 10 years D. 12 years
29. Maximum retention period of the bank records in case of suspicious transactions is -
A. 5 years B. 7 years C. 10 years D. 15 years
30.Four eyes concept means -
A. opening and verifying of account by one person two times
B. opening and verifying of account by electronic device/s
C. opening and verifying of account by two different persons
D. none of the above
31. Role of the concurrent auditors / Internal auditors with KYC is to -
A. Review of compliance of KYC guidelines
B. Effectiveness of the implementation of the KYC
C. Verification of newly opened accounts and their transactions
D. All of the above
32. Role of the front line employees of a bank in respect of KYC guidelines is to -
A. Identify customers as per the existing instructions
B. Serve with Smile while opening the customer accounts
C. Assist the customer in filling-up the account opening forms
D. Provide efficient customer service
33. Which of the following transactions is/are not consistent with a salaried customer’s account?
A. Frequent deposits of cash in large sums by third parties
B. Deposit of cheques issued by foreign companies
C. High value transactions routed through the account with high frequency
D. All of the above
34.Which of the following transactions is/are suspicious from AML angle -
A. Large volume of credits happen through DDs/TTs/BC etC.,
B. Deposit of several small values of cheques
C. Frequent deposits of cash into the account by persons other than the account holder or his authorized representative
D. All of the above
35. While accounts are transferred from one branch to another, the receiving branch is expected to comply with KYC Norms. Which one of the
following is/are correct in this regard?
A. Detailed verification of Customer Profile as received from the earlier branch is to be done with caution
B. Detailed verification is not needed but the account is opened immediately and informed to the customer
C. Fresh details are to be obtained and a fresh customer profile is to be prepared
D. No transaction is to be permitted for the first six months till the customer is fully know to the bank
36. Unusual activities in respect of an customers account is/are -
A. Opening of account at a place other than the place of work
B. Frequent deposits of large sums of money bearing labels of other banks into the account
C. Request for closure of newly opened accounts where high value transactions are routed through D. All of the above
37. For effective implementation of “Know Your Employee”, measures to be adopted by the banks are -
A. Verification of the life-styles of the employees
B. Proper Job-rotation in work environment
C. Not allowing frequent cheque purchase to the employees by the employer
D. All of the above
39.Indicator/s about the suspicious transactions of a customer accounts is/are -
A. Depositing high value third party cheques endorsed in favour the account holder
B. Sudden increase in cash deposits
C. Receipt or payment of large sums of cash, which have no obvious purpose
D. All of the above
40.Which of the following document/s that can be accepted by the Banks as a proof of Customer Identification -
A. Electricity Bill B. Salary Slip
C. Income/Wealth Tax Assessment Order D. All of the above
41.Which of the following is a source of identification of new customer who is not having any valid documents such as, passport, etC.
A. Introduction from the third person having an account with the bank /branch
B. Introduction given the Safe deposit locker holder of the bank
C. Self–declaration given by the new customer along with other opening forms
D. None of the above
42. KYC is --
A. A One-time project B. To be carried out every 5 years
C. To be carried out every 2 years D. An ongoing process
43. Is India a member of FATF?
A. Yes B. No C. Has applied for inclusion D. Is likely to be made a member
44.What is the level of risk of Money Laundering in a Liability product (e.g., deposits)?
A. Generally High B. Medium C. Generally Low D. Cannot say
45.Letter of thanks is sent to introducer/s because it is -
A. laid down in the banks’ manual B. a routine practice followed by banks for years
C. recommended by the Auditors of banks
D. assisting banks in verification of genuineness or otherwise of the address
46.While opening an account in the name of a company, the following document/s is/are to be obtained - A. Organisation Chart of the
company B. Roles and responsibilities of the Company
C. Memorandum and Articles of Association of the Company
D. Instructions of the Registrar of the Company
47.Due diligence is done at the time of opening an account to enable banks to ensure -
A. identification of the customer at the time of opening an account
B. correctness of the various denominations of notes given by the customer while opening an account
C. authenticity of the signatures of the customer at the time of opening an account
D. speeding up the process of account opening of the new customers
48. For opening accounts in the case of Joint Hindu Undivided Family (JHUF), the following document/s is/are important -
A. Declaration of all family members B. Declaration of the Karta of the family
C. Declaration of all guardians on behalf of minors
D. Declaration can be exempted as per Hindu Succession Act
49. While opening an account in case of partnership firm, one of the vital document to be produced by the firm is -
A. Partners MOU B. Partnership Deed C. Registration certificate of Partnership
D. Signatures of the partners
50. The amount beyond which cash transactions (Receipts & Payments) are to be monitored by the Commercial Banks as stipulated by the RBI in
its guidelines is -
A. Rs.5 lacs & above B. Rs.8 lacs & above C. Rs.10 lacs & above D. No such lim
29 C
30 C
31 D
32 AKYC AML Mcq:
1.The amount beyond which cash transactions (Receipts & Payments) are to be monitored by the Commercial Banks as stipulated by the RBI in
its guidelines is -
A.Rs.5 lacs & above B. Rs.8 lacs & above C. Rs.10 lacs & above D. No such limit
2. Submission of details of PAN (Permanent Account Number) is compulsory for Fixed Deposits, Remittances, such as, DDs / TTs/ Rupee TCs,
etc., if the amount exceeds –
A. Rs.10,000/- B. Rs.25,000/- C. Rs.50,000/- D. No such limit
3. Branches should not open deposit/advances accounts of banned/ terrorist organisations as circulated by -
A.IRDA B. SEBI C. AMFI D. FIU
4. FCRA means - Foreign Contribution Regulation Acta
5. Maximum punishment by way of imprisonment for the offence committed under Money Laundering Act is -
A. 7 years B. 9 years C. 10 years D. 12 years
6. “Smurfing” means -
A. large number of cash deposits into same account
B. one voucher for high value deposit
C. low value denominations of cash D. None of the above
7. The objective of verifying the employee life-styles by the employer is -
A. to know the source of income
B. to ascertain whether the employee is having any contacts with illegal organisations
C. to ascertain whether the employee is assisting organisations banned by statutory authorities D. All of these
8. Role of the concurrent auditors / Internal auditors with KYC is to -
A. Review of compliance of KYC guidelines
B. Effectiveness of the implementation of the KYC
C. Verification of newly opened accounts and their transactions
D. All of the above
9. Strict adherence to KYC norms is achieved through -
A. following the statutory authority guidelines
B. identification of customers with appropriate documents
C. strict Implementation of the Banks Systems and procedures while opening the accounts
D. All of the above
10.Name the software available in the market for KYC implementation -
A. Bank Master B. Tally C. Bank Alert D. Bank Call
11. Which of the following transactions is/are not consistent with a salaried customer’s account?
A. Frequent deposits of cash in large sums by third parties
B. Deposit of cheques issued by foreign companies
C. High value transactions routed through the account with high frequency
D. All of the above
12. Which of the following transactions is/are suspicious from AML angle -
A. Large volume of credits happen through DDs/TTs/BC etC.,
B. Deposit of several small values of cheques
C. Frequent deposits of cash into the account by persons other than the account holder or his authorised representative
D. All of the above
13. While accounts are transferred from one branch to another, the receiving branch is expected to comply with KYC Norms. Which one of the
following is/are correct in this regard?
A. Detailed verification of Customer Profile as received from the earlier branch is to be done with caution
B. Detailed verification is not needed but the account is opened immediately and informed to the customer
C. Fresh details are to be obtained and a fresh customer profile is to be prepared
D. No transaction is to be permitted for the first six months till the customer is fully know to the bank
14.One of the sources that is available to identify the correctness of the information given by the New Customer of the Commercial Bank is -
A.Introduction given by the existing customer of the Bank
B. By studying the account opening form
C. By providing information by the agencies like CRISIL
D. None of the above
15. Which of the following is a source of identification of new customer who is not having any valid documents such as, passport, etC.
A. Introduction from the third person having an account with the bank /branch
B. Introduction given the Safe deposit locker holder of the bank
C. Self–declaration given by the new customer along with other opening forms
D. None of the above
16. Is India a member of FATF?
A. Yes B. No C. Has applied for inclusion D. Is likely to be made a member
17. Is adopting Anti Money Laundering practices compulsory for Banks in India?
A. Yes B. No C. Not Sure D. Will be made compulsory soon
18. Letter of thanks is sent to introducer/s because it is -
A. laid down in the banks’ manual
B. a routine practice followed by banks for years
C. recommended by the Auditors of banks
D. assisting banks in verification of genuineness or otherwise of the address
19. Which of the following is the cardinal rule for bankers in anti-money laundering efforts -
A. Know Your Customer & Know Your Employee
B Know the Customer of the other Banks
C. Know the income of the Customers of your Bank
D. Know the Assets Position of the customers of the Bank
20. 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
21. While opening an account in the name of a company, the following document/s is/are to be obtained -
A. Organisation Chart of the company
B. Roles and responsibilities of the Company
C. Memorandum and Articles of Association of the Company
D. Instructions of the Registrar of the Compan
22. How many recommendations were made by FATF on anti money laundering -
A. 65 recommendations B. NIL C. 40 recommendations D. Yet to be finalised
23. For opening accounts in the case of Joint Hindu Undivided Family (JHUF), the following document/s is/are important -
A. Declaration of all family members
B. Declaration of the Karta of the family
C. Declaration of all guardians on behalf of minors
D. Declaration can be exempted as per Hindu Succession Act
24. While opening an account in case of partnership firm, one of the vital document to be produced by the firm is -
A. Partners MOU B. Partnership Deed
C. Registration certificate of Partnership D. Signatures of the partners
25. Cash cannot be accepted for issue of DDs/TTs/Rupee TCs from the customers for Rs. ____
A. Rs.50,000/- & above B. Rs.75,000/- & above
C. Rs.1,00,000/- & above D. Rs.1,50,000/- & above
26. The branches of commercial banks should report suspicious transactions to -
A. Bank’s respective authority B. RBI C. Ministry of Finance D. None of the above
27. Maximum punishment by way of imprisonment for the offence committed under Money Laundering Act is -
A. 7 years B.9 years C. 10 years D. 12 years
29. Maximum retention period of the bank records in case of suspicious transactions is -
A. 5 years B. 7 years C. 10 years D. 15 years
30.Four eyes concept means -
A. opening and verifying of account by one person two times
B. opening and verifying of account by electronic device/s
C. opening and verifying of account by two different persons
D. none of the above
31. Role of the concurrent auditors / Internal auditors with KYC is to -
A. Review of compliance of KYC guidelines
B. Effectiveness of the implementation of the KYC
C. Verification of newly opened accounts and their transactions
D. All of the above
32. Role of the front line employees of a bank in respect of KYC guidelines is to -
A. Identify customers as per the existing instructions
B. Serve with Smile while opening the customer accounts
C. Assist the customer in filling-up the account opening forms
D. Provide efficient customer service
33. Which of the following transactions is/are not consistent with a salaried customer’s account?
A. Frequent deposits of cash in large sums by third parties
B. Deposit of cheques issued by foreign companies
C. High value transactions routed through the account with high frequency
D. All of the above
34.Which of the following transactions is/are suspicious from AML angle -
A. Large volume of credits happen through DDs/TTs/BC etC.,
B. Deposit of several small values of cheques
C. Frequent deposits of cash into the account by persons other than the account holder or his authorized representative
D. All of the above
35. While accounts are transferred from one branch to another, the receiving branch is expected to comply with KYC Norms. Which one of the
following is/are correct in this regard?
A. Detailed verification of Customer Profile as received from the earlier branch is to be done with caution
B. Detailed verification is not needed but the account is opened immediately and informed to the customer
C. Fresh details are to be obtained and a fresh customer profile is to be prepared
D. No transaction is to be permitted for the first six months till the customer is fully know to the bank
36. Unusual activities in respect of an customers account is/are -
A. Opening of account at a place other than the place of work
B. Frequent deposits of large sums of money bearing labels of other banks into the account
C. Request for closure of newly opened accounts where high value transactions are routed through D. All of the above
37. For effective implementation of “Know Your Employee”, measures to be adopted by the banks are -
A. Verification of the life-styles of the employees
B. Proper Job-rotation in work environment
C. Not allowing frequent cheque purchase to the employees by the employer
D. All of the above
39.Indicator/s about the suspicious transactions of a customer accounts is/are -
A. Depositing high value third party cheques endorsed in favour the account holder
B. Sudden increase in cash deposits
C. Receipt or payment of large sums of cash, which have no obvious purpose
D. All of the above
40.Which of the following document/s that can be accepted by the Banks as a proof of Customer Identification -
A. Electricity Bill B. Salary Slip
C. Income/Wealth Tax Assessment Order D. All of the above
41.Which of the following is a source of identification of new customer who is not having any valid documents such as, passport, etC.
A. Introduction from the third person having an account with the bank /branch
B. Introduction given the Safe deposit locker holder of the bank
C. Self–declaration given by the new customer along with other opening forms
D. None of the above
42. KYC is --
A. A One-time project B. To be carried out every 5 years
C. To be carried out every 2 years D. An ongoing process
43. Is India a member of FATF?
A. Yes B. No C. Has applied for inclusion D. Is likely to be made a member
44.What is the level of risk of Money Laundering in a Liability product (e.g., deposits)?
A. Generally High B. Medium C. Generally Low D. Cannot say
45.Letter of thanks is sent to introducer/s because it is -
A. laid down in the banks’ manual B. a routine practice followed by banks for years
C. recommended by the Auditors of banks
D. assisting banks in verification of genuineness or otherwise of the address
46.While opening an account in the name of a company, the following document/s is/are to be obtained - A. Organisation Chart of the
company B. Roles and responsibilities of the Company
C. Memorandum and Articles of Association of the Company
D. Instructions of the Registrar of the Company
47.Due diligence is done at the time of opening an account to enable banks to ensure -
A. identification of the customer at the time of opening an account
B. correctness of the various denominations of notes given by the customer while opening an account
C. authenticity of the signatures of the customer at the time of opening an account
D. speeding up the process of account opening of the new customers
48. For opening accounts in the case of Joint Hindu Undivided Family (JHUF), the following document/s is/are important -
A. Declaration of all family members B. Declaration of the Karta of the family
C. Declaration of all guardians on behalf of minors
D. Declaration can be exempted as per Hindu Succession Act
49. While opening an account in case of partnership firm, one of the vital document to be produced by the firm is -
A. Partners MOU B. Partnership Deed C. Registration certificate of Partnership
D. Signatures of the partners
50. The amount beyond which cash transactions (Receipts & Payments) are to be monitored by the Commercial Banks as stipulated by the RBI in
its guidelines is -
A. Rs.5 lacs & above B. Rs.8 lacs & above C. Rs.10 lacs & above D. No such lim
29 C
30 C
31 D
32 A
33 D
34 D
35 C
36 D
37 A
38 D
39 D
40 D
41 A
42 D
43 B
44 B
45 D
46 C
47
48 B
49 B
50 C
51 C
52 A
53 C
54
55 B
33 D
34 D
35 C
36 D
37 A
38 D
39 D
40 D
41 A
42 D
43 B
44 B
45 D
46 C
47
48 B
49 B
50 C
51 C
52 A
53 C
54
55 B
1.The amount beyond which cash transactions (Receipts & Payments) are to be monitored by the Commercial Banks as stipulated by the RBI in
its guidelines is -
A.Rs.5 lacs & above B. Rs.8 lacs & above C. Rs.10 lacs & above D. No such limit
2. Submission of details of PAN (Permanent Account Number) is compulsory for Fixed Deposits, Remittances, such as, DDs / TTs/ Rupee TCs,
etc., if the amount exceeds –
A. Rs.10,000/- B. Rs.25,000/- C. Rs.50,000/- D. No such limit
3. Branches should not open deposit/advances accounts of banned/ terrorist organisations as circulated by -
A.IRDA B. SEBI C. AMFI D. FIU
4. FCRA means - Foreign Contribution Regulation Acta
5. Maximum punishment by way of imprisonment for the offence committed under Money Laundering Act is -
A. 7 years B. 9 years C. 10 years D. 12 years
6. “Smurfing” means -
A. large number of cash deposits into same account
B. one voucher for high value deposit
C. low value denominations of cash D. None of the above
7. The objective of verifying the employee life-styles by the employer is -
A. to know the source of income
B. to ascertain whether the employee is having any contacts with illegal organisations
C. to ascertain whether the employee is assisting organisations banned by statutory authorities D. All of these
8. Role of the concurrent auditors / Internal auditors with KYC is to -
A. Review of compliance of KYC guidelines
B. Effectiveness of the implementation of the KYC
C. Verification of newly opened accounts and their transactions
D. All of the above
9. Strict adherence to KYC norms is achieved through -
A. following the statutory authority guidelines
B. identification of customers with appropriate documents
C. strict Implementation of the Banks Systems and procedures while opening the accounts
D. All of the above
10.Name the software available in the market for KYC implementation -
A. Bank Master B. Tally C. Bank Alert D. Bank Call
11. Which of the following transactions is/are not consistent with a salaried customer’s account?
A. Frequent deposits of cash in large sums by third parties
B. Deposit of cheques issued by foreign companies
C. High value transactions routed through the account with high frequency
D. All of the above
12. Which of the following transactions is/are suspicious from AML angle -
A. Large volume of credits happen through DDs/TTs/BC etC.,
B. Deposit of several small values of cheques
C. Frequent deposits of cash into the account by persons other than the account holder or his authorised representative
D. All of the above
13. While accounts are transferred from one branch to another, the receiving branch is expected to comply with KYC Norms. Which one of the
following is/are correct in this regard?
A. Detailed verification of Customer Profile as received from the earlier branch is to be done with caution
B. Detailed verification is not needed but the account is opened immediately and informed to the customer
C. Fresh details are to be obtained and a fresh customer profile is to be prepared
D. No transaction is to be permitted for the first six months till the customer is fully know to the bank
14.One of the sources that is available to identify the correctness of the information given by the New Customer of the Commercial Bank is -
A.Introduction given by the existing customer of the Bank
B. By studying the account opening form
C. By providing information by the agencies like CRISIL
D. None of the above
15. Which of the following is a source of identification of new customer who is not having any valid documents such as, passport, etC.
A. Introduction from the third person having an account with the bank /branch
B. Introduction given the Safe deposit locker holder of the bank
C. Self–declaration given by the new customer along with other opening forms
D. None of the above
16. Is India a member of FATF?
A. Yes B. No C. Has applied for inclusion D. Is likely to be made a member
17. Is adopting Anti Money Laundering practices compulsory for Banks in India?
A. Yes B. No C. Not Sure D. Will be made compulsory soon
18. Letter of thanks is sent to introducer/s because it is -
A. laid down in the banks’ manual
B. a routine practice followed by banks for years
C. recommended by the Auditors of banks
D. assisting banks in verification of genuineness or otherwise of the address
19. Which of the following is the cardinal rule for bankers in anti-money laundering efforts -
A. Know Your Customer & Know Your Employee
B Know the Customer of the other Banks
C. Know the income of the Customers of your Bank
D. Know the Assets Position of the customers of the Bank
20. 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
21. While opening an account in the name of a company, the following document/s is/are to be obtained -
A. Organisation Chart of the company
B. Roles and responsibilities of the Company
C. Memorandum and Articles of Association of the Company
D. Instructions of the Registrar of the Compan
22. How many recommendations were made by FATF on anti money laundering -
A. 65 recommendations B. NIL C. 40 recommendations D. Yet to be finalised
23. For opening accounts in the case of Joint Hindu Undivided Family (JHUF), the following document/s is/are important -
A. Declaration of all family members
B. Declaration of the Karta of the family
C. Declaration of all guardians on behalf of minors
D. Declaration can be exempted as per Hindu Succession Act
24. While opening an account in case of partnership firm, one of the vital document to be produced by the firm is -
A. Partners MOU B. Partnership Deed
C. Registration certificate of Partnership D. Signatures of the partners
25. Cash cannot be accepted for issue of DDs/TTs/Rupee TCs from the customers for Rs. ____
A. Rs.50,000/- & above B. Rs.75,000/- & above
C. Rs.1,00,000/- & above D. Rs.1,50,000/- & above
26. The branches of commercial banks should report suspicious transactions to -
A. Bank’s respective authority B. RBI C. Ministry of Finance D. None of the above
27. Maximum punishment by way of imprisonment for the offence committed under Money Laundering Act is -
A. 7 years B.9 years C. 10 years D. 12 years
29. Maximum retention period of the bank records in case of suspicious transactions is -
A. 5 years B. 7 years C. 10 years D. 15 years
30.Four eyes concept means -
A. opening and verifying of account by one person two times
B. opening and verifying of account by electronic device/s
C. opening and verifying of account by two different persons
D. none of the above
31. Role of the concurrent auditors / Internal auditors with KYC is to -
A. Review of compliance of KYC guidelines
B. Effectiveness of the implementation of the KYC
C. Verification of newly opened accounts and their transactions
D. All of the above
32. Role of the front line employees of a bank in respect of KYC guidelines is to -
A. Identify customers as per the existing instructions
B. Serve with Smile while opening the customer accounts
C. Assist the customer in filling-up the account opening forms
D. Provide efficient customer service
33. Which of the following transactions is/are not consistent with a salaried customer’s account?
A. Frequent deposits of cash in large sums by third parties
B. Deposit of cheques issued by foreign companies
C. High value transactions routed through the account with high frequency
D. All of the above
34.Which of the following transactions is/are suspicious from AML angle -
A. Large volume of credits happen through DDs/TTs/BC etC.,
B. Deposit of several small values of cheques
C. Frequent deposits of cash into the account by persons other than the account holder or his authorized representative
D. All of the above
35. While accounts are transferred from one branch to another, the receiving branch is expected to comply with KYC Norms. Which one of the
following is/are correct in this regard?
A. Detailed verification of Customer Profile as received from the earlier branch is to be done with caution
B. Detailed verification is not needed but the account is opened immediately and informed to the customer
C. Fresh details are to be obtained and a fresh customer profile is to be prepared
D. No transaction is to be permitted for the first six months till the customer is fully know to the bank
36. Unusual activities in respect of an customers account is/are -
A. Opening of account at a place other than the place of work
B. Frequent deposits of large sums of money bearing labels of other banks into the account
C. Request for closure of newly opened accounts where high value transactions are routed through D. All of the above
37. For effective implementation of “Know Your Employee”, measures to be adopted by the banks are -
A. Verification of the life-styles of the employees
B. Proper Job-rotation in work environment
C. Not allowing frequent cheque purchase to the employees by the employer
D. All of the above
39.Indicator/s about the suspicious transactions of a customer accounts is/are -
A. Depositing high value third party cheques endorsed in favour the account holder
B. Sudden increase in cash deposits
C. Receipt or payment of large sums of cash, which have no obvious purpose
D. All of the above
40.Which of the following document/s that can be accepted by the Banks as a proof of Customer Identification -
A. Electricity Bill B. Salary Slip
C. Income/Wealth Tax Assessment Order D. All of the above
41.Which of the following is a source of identification of new customer who is not having any valid documents such as, passport, etC.
A. Introduction from the third person having an account with the bank /branch
B. Introduction given the Safe deposit locker holder of the bank
C. Self–declaration given by the new customer along with other opening forms
D. None of the above
42. KYC is --
A. A One-time project B. To be carried out every 5 years
C. To be carried out every 2 years D. An ongoing process
43. Is India a member of FATF?
A. Yes B. No C. Has applied for inclusion D. Is likely to be made a member
44.What is the level of risk of Money Laundering in a Liability product (e.g., deposits)?
A. Generally High B. Medium C. Generally Low D. Cannot say
45.Letter of thanks is sent to introducer/s because it is -
A. laid down in the banks’ manual B. a routine practice followed by banks for years
C. recommended by the Auditors of banks
D. assisting banks in verification of genuineness or otherwise of the address
46.While opening an account in the name of a company, the following document/s is/are to be obtained - A. Organisation Chart of the
company B. Roles and responsibilities of the Company
C. Memorandum and Articles of Association of the Company
D. Instructions of the Registrar of the Company
47.Due diligence is done at the time of opening an account to enable banks to ensure -
A. identification of the customer at the time of opening an account
B. correctness of the various denominations of notes given by the customer while opening an account
C. authenticity of the signatures of the customer at the time of opening an account
D. speeding up the process of account opening of the new customers
48. For opening accounts in the case of Joint Hindu Undivided Family (JHUF), the following document/s is/are important -
A. Declaration of all family members B. Declaration of the Karta of the family
C. Declaration of all guardians on behalf of minors
D. Declaration can be exempted as per Hindu Succession Act
49. While opening an account in case of partnership firm, one of the vital document to be produced by the firm is -
A. Partners MOU B. Partnership Deed C. Registration certificate of Partnership
D. Signatures of the partners
50. The amount beyond which cash transactions (Receipts & Payments) are to be monitored by the Commercial Banks as stipulated by the RBI in
its guidelines is -
A. Rs.5 lacs & above B. Rs.8 lacs & above C. Rs.10 lacs & above D. No such lim
29 C
30 C
31 D
32 AKYC AML Mcq:
1.The amount beyond which cash transactions (Receipts & Payments) are to be monitored by the Commercial Banks as stipulated by the RBI in
its guidelines is -
A.Rs.5 lacs & above B. Rs.8 lacs & above C. Rs.10 lacs & above D. No such limit
2. Submission of details of PAN (Permanent Account Number) is compulsory for Fixed Deposits, Remittances, such as, DDs / TTs/ Rupee TCs,
etc., if the amount exceeds –
A. Rs.10,000/- B. Rs.25,000/- C. Rs.50,000/- D. No such limit
3. Branches should not open deposit/advances accounts of banned/ terrorist organisations as circulated by -
A.IRDA B. SEBI C. AMFI D. FIU
4. FCRA means - Foreign Contribution Regulation Acta
5. Maximum punishment by way of imprisonment for the offence committed under Money Laundering Act is -
A. 7 years B. 9 years C. 10 years D. 12 years
6. “Smurfing” means -
A. large number of cash deposits into same account
B. one voucher for high value deposit
C. low value denominations of cash D. None of the above
7. The objective of verifying the employee life-styles by the employer is -
A. to know the source of income
B. to ascertain whether the employee is having any contacts with illegal organisations
C. to ascertain whether the employee is assisting organisations banned by statutory authorities D. All of these
8. Role of the concurrent auditors / Internal auditors with KYC is to -
A. Review of compliance of KYC guidelines
B. Effectiveness of the implementation of the KYC
C. Verification of newly opened accounts and their transactions
D. All of the above
9. Strict adherence to KYC norms is achieved through -
A. following the statutory authority guidelines
B. identification of customers with appropriate documents
C. strict Implementation of the Banks Systems and procedures while opening the accounts
D. All of the above
10.Name the software available in the market for KYC implementation -
A. Bank Master B. Tally C. Bank Alert D. Bank Call
11. Which of the following transactions is/are not consistent with a salaried customer’s account?
A. Frequent deposits of cash in large sums by third parties
B. Deposit of cheques issued by foreign companies
C. High value transactions routed through the account with high frequency
D. All of the above
12. Which of the following transactions is/are suspicious from AML angle -
A. Large volume of credits happen through DDs/TTs/BC etC.,
B. Deposit of several small values of cheques
C. Frequent deposits of cash into the account by persons other than the account holder or his authorised representative
D. All of the above
13. While accounts are transferred from one branch to another, the receiving branch is expected to comply with KYC Norms. Which one of the
following is/are correct in this regard?
A. Detailed verification of Customer Profile as received from the earlier branch is to be done with caution
B. Detailed verification is not needed but the account is opened immediately and informed to the customer
C. Fresh details are to be obtained and a fresh customer profile is to be prepared
D. No transaction is to be permitted for the first six months till the customer is fully know to the bank
14.One of the sources that is available to identify the correctness of the information given by the New Customer of the Commercial Bank is -
A.Introduction given by the existing customer of the Bank
B. By studying the account opening form
C. By providing information by the agencies like CRISIL
D. None of the above
15. Which of the following is a source of identification of new customer who is not having any valid documents such as, passport, etC.
A. Introduction from the third person having an account with the bank /branch
B. Introduction given the Safe deposit locker holder of the bank
C. Self–declaration given by the new customer along with other opening forms
D. None of the above
16. Is India a member of FATF?
A. Yes B. No C. Has applied for inclusion D. Is likely to be made a member
17. Is adopting Anti Money Laundering practices compulsory for Banks in India?
A. Yes B. No C. Not Sure D. Will be made compulsory soon
18. Letter of thanks is sent to introducer/s because it is -
A. laid down in the banks’ manual
B. a routine practice followed by banks for years
C. recommended by the Auditors of banks
D. assisting banks in verification of genuineness or otherwise of the address
19. Which of the following is the cardinal rule for bankers in anti-money laundering efforts -
A. Know Your Customer & Know Your Employee
B Know the Customer of the other Banks
C. Know the income of the Customers of your Bank
D. Know the Assets Position of the customers of the Bank
20. 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
21. While opening an account in the name of a company, the following document/s is/are to be obtained -
A. Organisation Chart of the company
B. Roles and responsibilities of the Company
C. Memorandum and Articles of Association of the Company
D. Instructions of the Registrar of the Compan
22. How many recommendations were made by FATF on anti money laundering -
A. 65 recommendations B. NIL C. 40 recommendations D. Yet to be finalised
23. For opening accounts in the case of Joint Hindu Undivided Family (JHUF), the following document/s is/are important -
A. Declaration of all family members
B. Declaration of the Karta of the family
C. Declaration of all guardians on behalf of minors
D. Declaration can be exempted as per Hindu Succession Act
24. While opening an account in case of partnership firm, one of the vital document to be produced by the firm is -
A. Partners MOU B. Partnership Deed
C. Registration certificate of Partnership D. Signatures of the partners
25. Cash cannot be accepted for issue of DDs/TTs/Rupee TCs from the customers for Rs. ____
A. Rs.50,000/- & above B. Rs.75,000/- & above
C. Rs.1,00,000/- & above D. Rs.1,50,000/- & above
26. The branches of commercial banks should report suspicious transactions to -
A. Bank’s respective authority B. RBI C. Ministry of Finance D. None of the above
27. Maximum punishment by way of imprisonment for the offence committed under Money Laundering Act is -
A. 7 years B.9 years C. 10 years D. 12 years
29. Maximum retention period of the bank records in case of suspicious transactions is -
A. 5 years B. 7 years C. 10 years D. 15 years
30.Four eyes concept means -
A. opening and verifying of account by one person two times
B. opening and verifying of account by electronic device/s
C. opening and verifying of account by two different persons
D. none of the above
31. Role of the concurrent auditors / Internal auditors with KYC is to -
A. Review of compliance of KYC guidelines
B. Effectiveness of the implementation of the KYC
C. Verification of newly opened accounts and their transactions
D. All of the above
32. Role of the front line employees of a bank in respect of KYC guidelines is to -
A. Identify customers as per the existing instructions
B. Serve with Smile while opening the customer accounts
C. Assist the customer in filling-up the account opening forms
D. Provide efficient customer service
33. Which of the following transactions is/are not consistent with a salaried customer’s account?
A. Frequent deposits of cash in large sums by third parties
B. Deposit of cheques issued by foreign companies
C. High value transactions routed through the account with high frequency
D. All of the above
34.Which of the following transactions is/are suspicious from AML angle -
A. Large volume of credits happen through DDs/TTs/BC etC.,
B. Deposit of several small values of cheques
C. Frequent deposits of cash into the account by persons other than the account holder or his authorized representative
D. All of the above
35. While accounts are transferred from one branch to another, the receiving branch is expected to comply with KYC Norms. Which one of the
following is/are correct in this regard?
A. Detailed verification of Customer Profile as received from the earlier branch is to be done with caution
B. Detailed verification is not needed but the account is opened immediately and informed to the customer
C. Fresh details are to be obtained and a fresh customer profile is to be prepared
D. No transaction is to be permitted for the first six months till the customer is fully know to the bank
36. Unusual activities in respect of an customers account is/are -
A. Opening of account at a place other than the place of work
B. Frequent deposits of large sums of money bearing labels of other banks into the account
C. Request for closure of newly opened accounts where high value transactions are routed through D. All of the above
37. For effective implementation of “Know Your Employee”, measures to be adopted by the banks are -
A. Verification of the life-styles of the employees
B. Proper Job-rotation in work environment
C. Not allowing frequent cheque purchase to the employees by the employer
D. All of the above
39.Indicator/s about the suspicious transactions of a customer accounts is/are -
A. Depositing high value third party cheques endorsed in favour the account holder
B. Sudden increase in cash deposits
C. Receipt or payment of large sums of cash, which have no obvious purpose
D. All of the above
40.Which of the following document/s that can be accepted by the Banks as a proof of Customer Identification -
A. Electricity Bill B. Salary Slip
C. Income/Wealth Tax Assessment Order D. All of the above
41.Which of the following is a source of identification of new customer who is not having any valid documents such as, passport, etC.
A. Introduction from the third person having an account with the bank /branch
B. Introduction given the Safe deposit locker holder of the bank
C. Self–declaration given by the new customer along with other opening forms
D. None of the above
42. KYC is --
A. A One-time project B. To be carried out every 5 years
C. To be carried out every 2 years D. An ongoing process
43. Is India a member of FATF?
A. Yes B. No C. Has applied for inclusion D. Is likely to be made a member
44.What is the level of risk of Money Laundering in a Liability product (e.g., deposits)?
A. Generally High B. Medium C. Generally Low D. Cannot say
45.Letter of thanks is sent to introducer/s because it is -
A. laid down in the banks’ manual B. a routine practice followed by banks for years
C. recommended by the Auditors of banks
D. assisting banks in verification of genuineness or otherwise of the address
46.While opening an account in the name of a company, the following document/s is/are to be obtained - A. Organisation Chart of the
company B. Roles and responsibilities of the Company
C. Memorandum and Articles of Association of the Company
D. Instructions of the Registrar of the Company
47.Due diligence is done at the time of opening an account to enable banks to ensure -
A. identification of the customer at the time of opening an account
B. correctness of the various denominations of notes given by the customer while opening an account
C. authenticity of the signatures of the customer at the time of opening an account
D. speeding up the process of account opening of the new customers
48. For opening accounts in the case of Joint Hindu Undivided Family (JHUF), the following document/s is/are important -
A. Declaration of all family members B. Declaration of the Karta of the family
C. Declaration of all guardians on behalf of minors
D. Declaration can be exempted as per Hindu Succession Act
49. While opening an account in case of partnership firm, one of the vital document to be produced by the firm is -
A. Partners MOU B. Partnership Deed C. Registration certificate of Partnership
D. Signatures of the partners
50. The amount beyond which cash transactions (Receipts & Payments) are to be monitored by the Commercial Banks as stipulated by the RBI in
its guidelines is -
A. Rs.5 lacs & above B. Rs.8 lacs & above C. Rs.10 lacs & above D. No such lim
29 C
30 C
31 D
32 A
33 D
34 D
35 C
36 D
37 A
38 D
39 D
40 D
41 A
42 D
43 B
44 B
45 D
46 C
47
48 B
49 B
50 C
51 C
52 A
53 C
54
55 B
33 D
34 D
35 C
36 D
37 A
38 D
39 D
40 D
41 A
42 D
43 B
44 B
45 D
46 C
47
48 B
49 B
50 C
51 C
52 A
53 C
54
55 B
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