State Bank Learning Centre, Bareilly

1 The correct sequence of stages of money laundering is?

a) Placement; Layering; Integration b) Integration; Layering; Placement

c) Layering; Integration; Placement d) None of the above

2. In terms of PML Amendment Act 2012, banks should maintain for at least
__________years from the date of transaction between bank and client.
a) 10 b) 5
c) 7 d) Unlimited
3. Failure to comply with the obligation of maintenance of records, furnishing
information and verifying the identity of clients, the Director FIU-IND is empowered
to impose fine on any banking company which may vary from ( ? ) to ( ? ) for each
failure.

a) One lakh rupees to five lakh b) One lakh rupees to ten lakh
rupees rupees

c) Ten thousand rupees to one lakh d) Five lakh rupees to ten lakh
rupees rupees

4. Utility bill taken for address proof should not be old for more than

a) 1 month b) 2 month
c) 3 months d) 6 months
5 KYC Policy incorporates ____ key elements
a) Three b) Four
c) Five d) Six
6. In case address mentioned as per ‘proof of address’ undergoes a change, fresh proof of
address is to be submitted to the bank/FI within a period of
a) One week b) Two weeks
c) One month d) Six months
7. Information accompanying domestic wire transfers of Rs. ____ and above must include
complete originator information

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a) All irrespective of amount b) Rs 20000
c) Rs 50000 d) 5.00 lakh
8. Banks /FIs may maintain records of the identity of the clients, and records in respect of
transactions in
a) Hard copy b) Soft copy
c) Hard copy and Soft copy d) Hard copy or Soft copy
9. If a customer abandons/aborts the transaction on being asked to give some details or to
provide documents, such attempted transactions should be reported in STRs. What is the
threshold for reporting?
a) Rs 50000 b) Rs 10.00 lac
c) Rs 5.00 lac d) Irrespective of amount
10. Who sends the list of individuals and entities subject to UN SANCTION?
a) Ministry of external affairs b) Ministry of home affairs
c) RBI d) FIU-IND
11. RBI updates Master Circular on KYC/AML/CFT every year as on
a) 1.01 b) 1.04
c) 1.07 d) 1.12
12. Authenticity of PAN card may be checked with
a) CBDT website b) UIDAI website
c) No checking required d) Verification with original will
do
13. In case of existing accounts
a) Account opened after 1976 b) Account of High risk
is to be made KYC compliant category is to be made KYC
compliant
c) Accounts of high risk d) All the existing accounts to
category having credit/debit be made KYC compliant.
summation of Rs. 10.00 lac per
annum to be made KYC compliant
14. Details of registration of companies should be verified through company master data from
Ministry of Corporate Affairs, GOI website
a) www.cma.gov.in b) www.mca.gov.in
c) www.cma.org.in d) www.mca.org.in
15. Who issues list of high risk countries in our bank

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a) GMU, Kolkata b) AML/CFT department,
Jaipur
c) International Banking d) United Nation
division, Mumbai
16. Non-Bank Financial Institution are categorized under ______risk customers
a) High b) Low
c) Medium d) As per turn over
17. Venture Capital companies are categorized under __________risk customers
a) Medium b) High
c) Low d) Very High
18. STRs are of two types
a) Subjective and objective b) Subjective and system
generated
c) System generated and d) Objective and manual
manual
19. It should be ensured that all new products are fully KYC compliant, existing products should
be reviewed at least once a year during the quarter
a) Jan to March b) April to June
c) July to Sept d) Octb to Dec
20. . ____________ are nominated as Dy. MLROs
a) Dy. General Manager (B&O) b) Assistant General Manager
for CPCs and direct branches (Region) for branches of the
respective region
c) Both of the above d) None of the above
21. Scrutiny of unusual transactions that may lead to suspicion should be done by................ for
cash transaction upto Rs. 50 thousand and transfer transactions upto 1.00 lac
a) Senior Assistant b) Special assistant
c) Senior special assistant d) MOD/Service Manager/BM
22. Scrutiny of unusual transactions that may lead to suspicion should be done by________for
cash transaction above Rs. 2.00 lac and transfer transactions above Rs. 5.00 lac
a) Senior assistant b) Special assistant
c) Special senior assistant d) MOD/Service manager/BM
23. For foreign offices, individual cash withdrawal and deposits for US $ ________and above or
the thresholds prescribed by the regulators for cash transactions are to be closely

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monitored and reported as per the host country requirements
a) 1000 b) 10000
c) 50000 d) 100000
24. Asia Pacific Group on money laundering is headquartered at
a) Manila b) Bangkok
c) Beijing d) New Delhi
25. Punishment for offence of money laundering is
a) not less than 3 years but b) not less than 5 years but
extendable up to 7 years extendable up to 9 years
c) not less than 7 years but d) not less than 3 years but
extendable up to 9 years extendable up to 5 years
26. The stage in which money is dispersed and disguised in the system is known as
a) Placement b) Integration
c) Layering d) Amalgamation
27. Maximum penalty in addition to punishment for committing a Money Laundering Act is
a) Rs. 15 Lakhs b) Rs. 20 Lakhs
c) Rs. 10 Lakhs d) No ceiling
28. Front companies are
a) Companies used by money
launderers to hide the proceeds of b) Located usually in front of
illicit activities among the banking the commercial centers
deposits of those companies
c) Not accepting cash or credits d) None of the above
cards, as they are concerned with
incoming and outgoing telex
transfers only
29. In the context of Money Laundering, Red Flag means
a) A warning sign used to bring b) A traffic Red signal where
attention to a potentially suspicious you have to stop
transaction / activity
c) The standard flag of d) None of the above
countries not cooperative in fighting
money laundering

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30. CDD includes
a) Verification of Identity of the b) Obtaining required
customer documents
c) Both of above d) None of the above
31. For the purpose of verifying the identity of customers at the time of commencement of an
account-based relationship, banks/ FIs may rely on a third party. The ultimate responsibility
rest with
a) Bank/FI b) Third Party
c) Customer d) None
32. Cross border wire transfers of amount more than must be accompanied by accurate and
meaningful originator information
a) Rs 10.00 Lac b) 50 thousand
c) Rs 20 thousand d) All irrespective of amount
33. Records pertaining to the identification of the customers and their address obtained while
opening the account and during the course of business relationship are properly preserved
for at least five years after the ….................. under Rule 10 of the PML Rules
a) Opening of the account b) Business relationship is ended
c) Renewal of KYC d) None of the above
34. UAPA means
a) Unidentified Activities (Prevention) Act b) Unidentified Associations (Prev.) Act
c) Unlawful Activities (Prevention) Act d) Unidentified Associations (Prev )Act
35. The Unlawful Activities (Prevention) Act 1967 has been amended in 2008 for
a) Prevention of terrorist activities b) Prevention of money laundering
c) Prevention of and coping with d) Prevention of and coping with M.L.

Terrorist activities

36. FIU- Ind is headquartered at

a) Mumbai b) New Delhi
c) Banglore d) Hyderabad
37. In case, the match of any of the customers with the particulars of designated
individuals/entities is beyond doubt, the bank would prevent designated persons from
conducting financial transactions under information to
a) Joint Secretary (IS.I) MHA b) Jt. Secretary Ministry of External Affairs
c) Joint Secretary, Ministry of Commerce d) RBI

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38. Bullion dealers / jewellers are categorized under
a) Very High Risk b) High Risk
c) Medium Risk d) Low risk
39. Telemarketers are categorized under ____________risk customers
a) Very High Risk b) High risk

c) Medium risk d) Low risk

40. Auctioneers are categorized under ___________risk customers
a) Very High Risk b) High Risk
c) Medium Risk d) Low Risk
41. The AML/CFT Department is headed by
a) AGM (AML/CFT) b) DGM (AML/CFT)
c) CGM (AML/CFT) d) DGM (GCO)
42. FATF was established in the year
a) 1976 b) 1985
c) 1989 d) 2001
43. The stage of money laundering at which illicit money becomes indistinguishable from
legitimate funds and can be reinvested is called:
a) Placement b) Integration
c) Layering d) Structure
44. Cash Transaction Report to FIU-IND must be submitted
a) Half yearly b) Monthly
c) Fort nightly d) As and when there is transaction
45. In the case of small account the aggregate of all withdrawals and transfers in a month does
not exceed
a) Rs.50000 b) Rs.10000
c) Rs. 100000 d) Rs. 200000
46. Which of the following documents is not required for opening account of a trust
a) Registration Certificate b) Trust Deed
c) An OVD of the person holding an attorney d) All above document are compulsory
to transaction on firm’s behalf
47. KYC Exercise should be done at least every ______ Years for medium risk customers
a) 2 b) 5
c) 8 d) 10
48. STRs should be furnished within _____days or arriving at a conclusion that any transaction/

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series of transactions is of suspicious nature
a) 3 b) 5
c) 7 d) 15
49. Who sends the list of individuals and entities subject to UN SANCTION?
a) Ministry of external affair b) Ministry of Home affair
c) RBI d) FIU-IND
50. A designated email ID ____________ has been created to facilitate the branches to log in
the details of suspicious identified / attempted transactions
a) alerts.agm@sbi.co.in b) agm.alerts@sbi.co.in
c) alerts.dgm@sbi.co.in d) dgm.alerts@sbi.co.in
51. CCR is to be sent manually, as and when any instance of detection of counterfeit currency is
observed to
a) GM AML/CFT b) CGM BO
c) CGM GCO d) DGM BO
52. Where forgery of valuable security or documents have taken place report should be
furnished to FIU-IND in
a) CCR b) STR
c) Plain Text Form d) Security Report Form
53. Who is Designated Director of the bank under PMLA?
a.Principal Officer b. CGM GCO
c. MD Risk & Compliance d. MD NBG
54 FATF is headquartered at
a. Paris b. New York
c.Basel Washington
55 Primary responsibility of ensuring implementation of KYC/AML/CFT Policy and related
guidelines is vested with
a.Designated Director b. GM (AML/CFT ) & Principal Officer
c. Respective Business Groups/Circle/SBU d. CGM GCO
56 Whose responsibility is to verify and record his comments on the effectiveness of measures
taken by the branches/level of implementation of KYC guidelines
a. Officer in cahrge of Accounts b. Controlling Authorities
c. Concurrent Auditor d. MOD
57 Which section of PMLA has defined the “offence of money laundering”?
a. Section 2 b. Section 3

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c. Section 4 d. Section 5
58 The AML/CFT Department is headed by
a. AGM (AML/CFT0 b. DGM (AML/CFT)
c. GM (AML/CFT) d. DGM (GCO)
59 When a bank/FI identifies a customer for opening an account it should identify the
beneficial owner and verify his identity. Where the client is trust and beneficial owner is the
trustee, the beneficiaries with ____% or more interest in trust should be identified
a. 5 b. 10
c. 15 d. 25
60 . Counterfeit Currency Report (CCR) should be submitted to FIU -IND by
a.Last day of the succeeding month b.15th of the succeeding month
c.7th of the succeeding month d.10th of the succeeding month
61 A Shell company is
a. A company in a foreign country b. aA cOMPANY IN A SHELL LISLAND
c. An offshore Company d.A company that exist on paper only and
has no physical existence
62 KYC was introduced in the year
a. 1991 b. 1987
c. 1976 d. 1969
62 . Review of risk categorization of customer should be done periodically not less than
_________in six month
a. Three times b. Two times
c. Once d. Only when there is change in the
occupation
63 Cash Transactions Report should be submitted to FIU -IND by
a.7th of the succeeding month b.10th of the succeeding month
c.15th of the succeeding month d.Last day of the succeeding month
64

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