ANTI MONEY LAUNDERING IN INDIA LAt which stage of the money laundering process it is relatively easy to detect the crime: © Integration stage © Ans-Placement stage © Layering stage {ame screening of all the proposed customers to ensure that names are not given in the li given by UN or in regulatory lists helps in: © Ans-Combating Financing for Terrorism. © Monitor ng the suspicious transactions © Processing criminal proceeds 3.Smurfing is a method adopted to avoid © Ans-regulatory reporting requirements, © suspicious activ © excessive deposits in bank account 4.Use of multiple eash deposi called: cach smaller than the minimum cash reporting requirements is, © Ans-Smuggling 6 murfing © None of the above 5.lllegal act to plac a vity where stacks of gold, cash, jewellery or even rare stamp: called: re moved from place fing © Ans.-Smuggling © None of the above 6.The stage where ch © Ans-Layering ixed with illegal money to disguise it further is called: © Integration © Trafficking7.What does reselling and repureh: © Ans-Furthers integration of illegal funds wg assets for laundering money do: © Exposes the crime © Boosts the economy 8,Common means of int ing money into the financial system is: © Business recycling © Opening multiple accounts © Ans xport import transactions 9. Which of the following is not a s money: © Drug trafficking © Smuggling © Ans-Charity 10.At what point itis difficult for the bank to distinguish between legal and illegal funds c Layering c Ans-Integration e Placement 11.Customer identification procedures fall under which aspect of money laundering, regulations: © Ans-Know your customer (KYC) © Compliance with law © Internal policies and procedures 12. Transactions that are inconsistent with the customer's known legitimate activities or nature of business are called: © Null transactions © Erratic transactions © Ans-Suspicious transactions13,Central National Agency set up by the government which is responsible for receiving, processing, analyzing and disseminating information relating to suspicious transactions, © AML Cell © Ans-FIU+ © RBI 14.As per the regulations of the RBI. tipping off is an offence and the employees should be cautious not to violate this during their interaction with the customer in process of conducting, EDD. © True © Ans. 15.1nforming/communicating to the customers(diteetly or indirectly) that his account has been or would be reported to the regulators for suspicious activity or name match amounts to: © smurfing © Wilful blindness © Ans-Tipping Ort © Structuring 16.According to PMLA obligations the records of the transact © 6 years © 15 years © Ans-5 years 17.Which section of the PMLA talks about procedure and manner of furnishing information: © Section 14 © Ans-Seetion 15 © Section 13 18.Section 12 A of PMLA states the obligations of reporting entities to furnish inform: © Ans-FIU-Director © Compliance officer © MRLO19,PMLA was enacted in: © Ans-2002 © 2005 © 2009 20.{nformation of the violation of the provisions of section 12 is provided to the director by: © Compliance officers © MLRO © Ans-Bankers 21, Which provision under PMLA gives immunity to banking companies, intermediaries and their officers not to be liable to any civil proceedings aga furnishing information are laid down in: © Section 12 © Section 13 wancial institutions, st them for © Ans-Seetion 14 22.Regulations empows financial institutions or intermediaries for failure to c¢ down in: © Section 15 ng the director o levy a fine or order on banking companies or mply with provisions of section 12 are laid © Ans-Seetion 13 © Section 14 23.As per the Group AML Polie customer identification data is . the period of maintenance to records of transaction and © 8 years © Ans-5 years © 10 years 24,Branches may open accounts for those customers who are not able to provide KYC documents, provided, the total credit summation in all the accounts taken together is not expected to exceed ina year. © Ans-81 Lakh © Lakh © 350,000/-25.KYC updation for high risk customers should be done in © Ans-2 years © S8years © 10 years 26.This document is accepted as an identity proof at the time of opening the account: © Photo debit card © Ans-Driving license © Ration Card 27.PAN card issued by income tax department is used as: © Address proof © Ans-Identity proof © Both 28. All SBUs Heads are responsible to implement the AML framework, polic in their respective SBUs. © Ans-True © False ind procedures 29. Which of the following shall be applicable for establishing relationship with Politically Exposed Persons: © Ans-Enhanced due diligence © Simplified Procedures © Open Small Accounts 30,PEP stands for © Ans-Political Exposed Persons © Politically Experienced Persons © Politically Exiled Party © Politically Exempted Party31.Valid Driving license with photo ID and address of the customer is used for: © Ans-Identity proof © Address proof © Both 32.Photo debit card of the customer is used for: © Identity proof © Address proof © Ans-Not an acceptable OVD. 33.1CICI bank wi © Establish MIS to identify critical areas have proper record maintenance polici and procedures in place to: © Ans-Ensure required documents are ayailable within reasonable period of time © Ensure that SBUs function efficiently 34. According to RBI guidelines branches should intimate their controlling offices about cash transactions above: © RsSmillion © Ans-Rs 1 million CC Rsos 35. Which of these is a suspicious transaction: © Customer is a salaried employee © Rs 40,000 is debited to customers salary account every month © Ans-Customer makes or receives huge deposits or remittances along with pre-closure of loans payments of previous over dues 36,Time limit for Periodic Updation of KYC for High, Medium and Low risk customers are: © atleast once in every 10, 8, and 2 ye respectively © Ans-at least once in every 2, 8, and 10 years respectively © atleast once in every 8, ind 1 years respectively © atleast once in every 1, 8, and 10 years respectively37.MLRO will report the © SBU compliance officer spicious transaction to: © Ans-FIU- India © AMLO 38.Person responsible for monitoring day-to-day implementation of ICICI bank's policy and procedures is: © SBU compliance officer ‘groups AML, © Ans-MLRO © cpo 39.From the cessation of the date of the ti transaction for a period of © Ans-8 years © 2oyears © 1Syears 40.Designated Director is the person designated by the Bank to e the obligations imposed under PMLA and its Rules © Ans C Fals fe overall compliance with 41 The suspicious activity with respect to AML can be reported through which option in ICICI Universe page? © Ans-Report a Suspl © Money Laundering Reporting © Report A Fraud 42.Placement methods are broadly divided into: Banks and financial institutions Non banking methods [> Ans-None of the above43.Which of the following is considered to be a suspicious money laundering indicator [ Ans-Deposits of large amounts, which are shortly followed by transfer operations Ans-Client present unclear information, such as an inoperative telephone number or one that does not exist in the first place. [ Ans-Opening of Multiple Accounts by the customer [Regular salary deposits in the account 44.At the integration stage of the money laundering process: [ _Ans-Illegal funds are moved back into the economy [ _Ans-the illegal proceeds are used to acquire real estates smurfing is done to avoid reporting requirements 45.Consequences of money laundering are: [ Ans-Terrorism Financing 7 Ans-Endangers ciety at large T Boosts the economy 46Key elements of a Know your customer (KYC) includes: [ Ans-Customer acceptance policy Ans-Customer Identification procedures Customer verification A Ans-Risk Management “Transaction Monitoring 5 5 - Bb 47.What are the key Anti Money Laundering objectives of ICICI bank: [ Ans-To protect the bank's reputation roa I None of the above To ensure compliance with the laws and regulations in force from time to time 48.Valid Passport with photo ID and address of the customer is used for: I Ans-Identity proof I Ans-Address proof [Not an acceptable document49.SBUss designated official to perform AML Compliance function shall: I Ans-operate independently [ Ans-report identified suspicious transactions to MLRO- None of the above 50.The MLRO report to the Audit Committee would contain: I Observations on deficiencies in compliance and procedures Resource requirements I Ans-None of the above (51).Which of the following is not a regulatory report furnished to FIU: Cash Transaction Report Corporate Transaction Report Ans-Cross Border Wire Transfer Report Counterfeit Currency Report (52).Exempted Benefici itegoris Beneficial Owners for which identification and verification of 1 Owner is not necessary as per RBI includes: Ans-Listed Companies and its Subsidiaries all Private Companies Unlisted private companies (53).This is not a step in the money launder Placement stage Integration stage Ans-Recovery stage process: (54).Placement stage is when eash is channeled into: ‘Ans-Banks Safe houses Securities (55.)Money laundering Risk does not include which of the following: Ans-Reputational Risk to the Bank Ans-Legal and Regulatory Risk to the Bank Ans-Action against erring employees & violation of code of conduct None of the above(56.)Separating the funds from their illegal source is Ans-Smurfing Integration ed Layering (57). for the customer is based on various parameters like identity, social / financial status, nature of business activity, and information about the clients’ business and their location etc. Ans-Risk categorisation Customer Acceptance Customer Identification (58.)In case of small accounts under KYC norms the aggregate of all ci ina financial year does not execed® 1 Lakh not exeeeding €50000/- at any point of time Both the above statements are False Ans-Both the above statements are True the balance (59,)Adequate diligence isthe fundamental requirement for any business transaction: Ans-True ‘alse (60.)Fresh proof of address shall not be sought at the time of Periodic Updation (Re-KYC) for customers in case there is no change in their identity and address. Self Certification ‘will suffice, Low risk customers ‘Small account holders Ans-High risk customers (61, Customer due diligence is an approach taken by the bank to: Ans-Identify and verify customers and heneficlal owner Formulate group AML standards Foster new SBUs (62.)Each SBU will develop appropriate measures for transaction processing in consultation with: cbo Ans-MLRO- BoD(63.)Physical presence of Low risk customer at the time of Periodic Updation (Re-KYC) shall be insisted upon, True Ans-False (64.)Which of the following are the Transaction based indictors to identify suspicious activities Ans-Frequent cash transactions In large amount Ans-Huge amount of RTGS transactions not in line with the profile of the customer Ans-Unveriflable and counterfeit documents (65.)PMLA states the following obligations for the banks: Ans-Maintain records of all transactions Ensure confidentiality of inform Ans-Furnish all the regulatory reports to the FIU (66,)Produet and Process Approval Committee performs Ans-Approves new products and processes after eval Fu jhe following ition of ML nishes report to the Audit Committee Ans-Approves appropriate AML/KYC procedures for various SBUs. (67.)MoneyLaunderingis usually carried out in Fourstage ‘Ans-Three stage Two Stage (68.)The stage where legitimate explation is givento illegitimate fundsis called Finalstage ‘Ans-Integration stage clean up stage (69.)Which section of the about maintenance of records and identity of the customers by the banking companies, financial institutions and intermediaries. ® Section 12 © Section 13 © Section 14(70.)MLRO will submit quarterly report on status of implementation of AML framework to: © Audit Committee of the Board © AMLG © cop (71.)For reporting fictitious offer and lottery fraud, the employees can use which tool? © mails@icicibank.com strmails@icicibank.com o © Chainmails(@icicibank.com s firmails@icicibank.com (72,)ICICL bank will monitor all eash transactions beyond the threshold limit set by the Central National Agency: © AML framework © FIU- India © MLRO Maintenance of records of the nature and value of transactions Maintenance of records of customers, None of the above (74,) Money Laundering is:- Anseconverting legal money into illegal money (75.) kye updation for low risk customers should be done in Ans.-10 years (76.) Letter issued by a Gazetted officer with duly attested photograph of the person is collected under a simplified measure as deemed OVD for- Ans-ldentity proof