KYC AML MCQs

Q1. KYC is --A One-time project

                 To be carried out every 5 years

                 To be carried out every 2 years

                 An ongoing process*

                 -

Q2. Is India a member of FATF?

                 Yes*

                 No

                 Has applied for inclusion

                 Is likely to be made a member

Q3.Is adopting Anti Money Laundering practices compulsory for Banks in India?

                 Yes

                 No

                 Not Sure

                 Will be made compulsory soon

Q4.What is CFT under KYC /AML regulations ?

                 Combating the financing of terrorism*

                 Calculating financial terrorism

                 Commission on financial terrorism

                 Committee on financial terrorism

Q5.The process of money laundering is perpetrated by -

                 Placement & Layering

                 Organisation & Controlling

                 Depositing & Withdrawing

                 All of the these*

Q6.Letter of thanks is sent to introducer/s because it is -

                 laid down in the banks’ manual

                 a routine practice followed by banks for years

                 recommended by the Auditors of banks

                 assisting banks in verification of genuineness of account opened*

Q7 .Which of the following is the cardinal rule for bankers in anti-money laundering efforts -

                 Know Your Customer & Know Your Employee*

                 Know the Customer of the other Banks

                 Know the income of the Customers of your Bank

                 Know the Assets Position of the customers of the Bank

Q8.Money Laundering means –

                 Conversion of illegal money into legitimate money*

                 Conversion of cash into gold to make them legitimate

                 Conversion of assets into cash to make them legitimate

                 Conversion of assets to invest in Laundromat

Q9.For opening account of a limited company, the following document/s is/are to be obtained -

                 Roles and responsibilities of the Company

                 Memorandum and Articles of Association of the Company*

                 Instructions of the Registrar of the Company

                 Organisation Chart of the company

Q10.FATF means -

                 Financial Accounting Trade Federation

                 Financial Association of Traders in France

                 Foreign Authority Traders Federation

                 Financial Action Task Force*

Q11. Due diligence is done at the time of opening an account to enable banks to ensure -

                 identification of the customer at the time of opening an account

                 correctness of the various denominations of notes given by the customer while opening an account

                 authenticity of the signatures of the customer at the time of opening an account*

                 speeding up the process of account opening of the new customers

Q.12  The term “Hawala” is an ----- word

                 Telugu

                 English

                 Arabic*

                 Islamic

Q13.Anti Money Laundering measures were originally introduced by?

                 DICGC

                 EXIM Bank

                 FDIC

                 SEBI

Q14.FATF is located at -

                 Mumbai

                 New York

                 Paris*

                 Japan

Q15.What is NCCT -

                 National commission for cooperation in trade

                 National committee for cooperation in trade

                 Non Cooperative Countries and Territories*

                 None of the above

Q 16  One of the possible steps to be taken while opening NRI account by the bank branch is -

                 Authentication / verification of signature by Indian Embassy

                 Authentication / verification of signature made by the relative of NRI in India

                 Authentication / verification of signature made by friends of the NRI who are staying abroad

                 All of the above

Q17 In case of societies, the important document to be verified is -

                 Copy of Bye-Laws*

                 Certificate given by the ROC

                 Certificate given by the Local Authorities

                 No document is to be verified in case of societies, as it is exempted

Q18.For opening accounts in the case of Hindu Undivided Family (HUF), the following document/s is/are important -

                 Declaration of all family members

                 Declaration of the Karta of the family*

                 Declaration of all guardians on behalf of minors

                 Declaration can be exempted as per Hindu Succession Act

Q 19.While opening an account in case of partnership firm, one of the vital document to be produced by the firm is -

                 Partners MOU

                 Partnership Deed*

                 Registration certificate of Partnership

                 Signatures of the partners

Q19 Customer’ is defined as:

                 a person or entity that maintains an account and/or has a business relationship with the bank

                 an entity that maintains an account and/or has a business relationship with the bank

                 a person or entity that maintains only a business relationship with the bank

                 a person or entity that only maintains an account with the bank

Q20.Banks should not make payment of cheques/drafts/pay orders/banker’s cheques bearing that date or any subsequent date, if they are presented beyond -

                 the period of six months from the date of such instrument

                 the period of three months from the date of such instrument*

                 the period of three months from the date of presentment of such instrument

                 the period of three months from the date of lodging such instrument

Q21 . Under KYC norms Banks should prepare :

                 a profile for each new customer based on risk categorisation.

                 a profile for each new customer based on constitution.

                 a profile for each new customer based on financial status.

                 a profile for each new customer based on own funds.

 Q22 While opening an account UCIC means –

                 Unique Customer Identification Character

                 Unique Customer Index Code

                 Unique Customer Identification Code*

                 Unique Customer Identification Criterion

 Q23.Under KYC norms the expression (PEPs)While opening an account in case of partnership firm, one of the vital document to be produced by the firm is -

                 Politically Exposed Persons*

                 Politically experienced persons

                 Politically exiled persons

                 Politically exempted persons

Q24.In case of small account under KYC norms -

                 the aggregate of all credits in a financial year does not exceed rupees one lakh*

                 

                 the aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand

                 

Q25. Under KYC norms (STRs) opening an account in case of partnership firm, one of the vital document to be produced by the firm is -

                 Suspicious Transfer Reports

                 Suspicious Transaction Reports*

                 Suspicious Transaction References

                 Suspicious Transaction Regularisation

Q26.Correspondent banking is : opening an account in case of partnership firm, one of the vital document to be produced by the firm is -

                 the provision of depository services by one bank (the “correspondent bank”) to another bank (the “respondent bank”)

                 the provision of money market services by one bank (the “correspondent bank”) to another bank (the “respondent bank”)

                 the provision of capital market services by one bank (the “correspondent bank”) to another bank (the “respondent bank”)

                 the provision of banking services by one bank (the “correspondent bank”) to another bank (the “respondent bank”)