KYC AML RECOLLECTED

KYC AML 1. Cash receipt or cash payment of more than Rs 10 lakh are reported to FIU on CTR statement which should be sent to FIU within _____ from the close of the month: 15 days. 2. Suspicious Transaction report is sent to FIU within: 7 days from confirmation of suspicion. 3. In case of transactions carried out by a non-account based customer, that is a walk-in customer, where the amount of transaction is equal to or exceeds rupees whether conducted as a single transaction or several transactions that appear to be connected, the customer's identity and address should be verified: fifty thousand 4. As per KYC norms, banks are required to periodical update data. In respect of High risk customers, full KYC exercise will be required to be done at least every: two years 5. As per KYC norms, for how much period banks are required to preserve records in respect of photograph and proof of address or identity?: 5 years from date of close of account 6. As per KYC norms, in the event of change in this address due to relocation or any other reason, customers may intimate the new address for correspondence to the bank within: two weeks of such a change 7. As per KYC norms, risk classification of customers should be reviewed in every: 6 Months 8. Banks are required to FIU, cash transactions which are integrally connected to each other and total amount of receipt or total amount of payment in a month is more than: Rs 10 lac 9. Cash Transaction Report (CTR) in respect of cash receipt or cash payment of more than Rs 10 lac is to be sent to Director – FIU. What is the periodicity of the report – Fortnightly, Monthly, Quarterly, half yearly: Monthly, within 15 days of the close of the month. 10. FIR to be filed if number of Counterfeit notes in a single deposit is: 5 or above 11. If a customer does not comply with KYC requirements despite repeated reminders by banks, banks should impose ‘partial freezing’ by allowing all credits and disallowing all debits with the freedom to close the accounts after ____ months notice followed by a reminder for further period of ____months. If the accounts are still KYC non-compliant after _____months of imposing initial ‘partial freezing’ banks may disallow all debits and credits from/to the accounts, rendering them inoperative: 3, 3, 6 months. 12. In a cash deposit made by a customer, one piece of counterfeit note is detected. What should the bank do - (i) It should be impounded and acknowledgement to be issued(ii) Should be destroyed (iii) Should be returned back: It should be impounded and acknowledgement to be issued to depositor signed by cashier. 13. In case of counterfeit notes received in a deposit by a person with bank, FIR is not lodged and only a monthly consolidated report is sent if counterfeit notes in one remittance is up to: 4 14. In case of Non-KYC compliant customer, after how much time notice, account should be freezed?: 3 months notice 15. In respect of Low Risk customers, KYC norms relating to obtaining photograph and proof of address and ID should be applied once in: 10 Years 16. In respect of Medium Risk customers, KYC norms relating to obtaining photograph and proof of address and ID should be applied once in: 8 Years 17. Process of making illegally-gained proceeds (i.e. "dirty money") appear legal (i.e. "clean") is called: Money Laundering 18. RBI has allowed banks to accept at least _____ of the documents prescribed by RBI as activity proof by a proprietary concern, for opening a bank account in respect of a sole proprietary firm: One 19. What is the Risk category of Trust account High/Low/medium risk?: High Risk 20. When in case of deposit of cash over counter, two counterfeit notes are detected by bank, what should the bank do – (a) To be returned to customer, (b) impounded immediately, (c) call the police, (d) destroy it: impound immediately and issue acknowledgement to tender signed by the cashier 21. While opening bank account, as per KYC norms, what another document is taken by bank in addition to proof of ID?: proof of address ( Both can be same also) 22. Relaxation in KYC norms is permitted if the depositor undertakes that the balance outstanding in his account will not be more than and credits in a financial year will not exceed . Rs 50,000; Rs 100,000 23. Why KYC guidelines have been issued by RBI under section 35 A of the Banking Regulation Act: To prevent Money Laundering - 24. The terms used for hiding money to avoid tax is : Money laundering 25. Money laundering: conversion of illegal money into legal through banking channels. 26. For the purpose of KYC rules any addition & modification on which recommendation: Financial Action Task Force 27. Risk type for customer having political exposed person: High Risk 28. As per KYC Guidelines, Records of transactions to be maintained for at least ten years from the dateof transaction, instead of _________from the date of cessation of transactions, and records pertaining to identification of the customer and his address to be preserved for at least ten years after the business relationship is ended: ten years 29. A customer who does not complete all KYC norms, what type of account is opened for him? No Frill account in which cannot be more than Rs.50000 and credits in the Financial Year cannot be more than Rs.100000. 30. There were three cash withdrawals of Rs 5.80 lac ,Rs 4.90 lac & 0.25 lacs from an account in a month. Which of these transactions is/are will be reported to Financial Intelligence Unit as part of CTR? Cash withdrawals of Rs 5.8 lac and Rs 4.9 lac. 31. Under Prevention of Money Laundering Act, banks are required to preserve records relating to opening the account for how much period?: 10 years from date of closure of account. 32. Which of the following is not the key element of KYC policy a) Customer Acceptance Policy; b) Customer Identification Procedures; c) Monitoring of Transactions; d) Risk Management e) Customer Awareness Policy: Ans is E i.e. Customer Awareness Policy. 33. On whose recommendations, KYC norms came into force? (a) Goiporia Committee (b) Ghosh Committee (c) FATF: Ans is FATF 34. Under KYC Norms, Documents relating to opening the account like proof of address and identity and photograph should be taken again at what interval? (a) once in 10 years for low risk customer (b) once in 8 years for medium risk customers (c) once in 1 year for high risk customers (d) Both (a) and (b): Ans is (d) 35. Record of cash receipt and payment under KYC to be maintained if cash receipt or payment in a single day from one account is more than Rs 10 lakh. 36. For Low Risk customers, periodical up-dation of KYC data: Once in 10 years.