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KYC and Anti-Money Laundering Quiz

The document discusses Know Your Customer (KYC) compliance procedures in banking. [1] KYC is used to verify a customer's identity and address to prevent money laundering and ensure bank accounts are not used for criminal purposes. [2] Banks must follow KYC guidelines set by the Reserve Bank of India, which involve identifying customers and verifying that the personal details match the individual. [3] Regular updates are required for high-risk customers to maintain accurate KYC information on file.

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NRUSINGHA PATRA
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161 views2 pages

KYC and Anti-Money Laundering Quiz

The document discusses Know Your Customer (KYC) compliance procedures in banking. [1] KYC is used to verify a customer's identity and address to prevent money laundering and ensure bank accounts are not used for criminal purposes. [2] Banks must follow KYC guidelines set by the Reserve Bank of India, which involve identifying customers and verifying that the personal details match the individual. [3] Regular updates are required for high-risk customers to maintain accurate KYC information on file.

Uploaded by

NRUSINGHA PATRA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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KYC

1. Banks lending to Micro Finance Institutions & is considered as finance to ___


(a) Primary sector (b) Secondary sector (c) Priority sector
(d) Principal sector (e) None of these

2. What is the purpose of KYC in banking?

a) It is used for customer identification


b) It is used for increasing the CRR of banks
c) It is used against money laundering
d) It is used by the central bank to control liquidity
e) Both (a) and (c)

3. Money Laundering happens in which of the following stages?

a) Placement b) Layering c) Integration


d) All of these e) None of these

4. Which of the following norms help bank to obtain information about the identity and
address of the customers?
a) Service Norms b) Basel Norms c) KYC Norms
d) Lending Norms e) None of these

5. FATF was established to:

a) Regularly conduct on site manual evaluation report.


b) Ensure global action against money laundering.
c) Ensure global action against terrorist financing.
d) Ensure that the financial system is not used for criminal and terrorist purposes.
e) All of these

6. KYC means ________ ?

a) Know Your Customer very well


b) Know Your existing Customer very well
c) Know Your prospective Customer very well
d) Satisfy yourselves about the customer’s identity and activities
e) None of the above

7. What is the time frame stipulated by RBI for updating of KYC data in respect of high risk
customers?

a) 10 years b) 8 years c) 2 years


d) 5 years e) Not required to update

8. 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
e) None of these

Plot-1441, Opp. IOCL Petrol Pump, CRP Square, Bhubaneswar-751015


Ph. :8093556677, 9040456677, Web: www.vanik.org, E-mail: vanikbbsr@gmail.com
KYC

9. KYC guidelines followed by the Banks have been framed on the recommendations of
the_________?
a) Ministry of Home Affairs
b) Ministry of Rural Development
c) Indian Banks Association
d) Financial Intelligence Unit
e) Reserve Bank of India

10. KYC Compliance is done to ________?


a) Identify a person
b) To know the address of a person
c) To ensure the genuineness the person‟s identity as mentioned in the application and
to verify the correctness of address
d) Concern state government
e) None of these

Plot-1441, Opp. IOCL Petrol Pump, CRP Square, Bhubaneswar-751015


Ph. :8093556677, 9040456677, Web: www.vanik.org, E-mail: vanikbbsr@gmail.com

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