Iibf Exam Review : Kyc /Aml 6 Oct 2018

shared by Aravind S:
KYC aml and bcsbi recollected questions on 06.10.2018
6 oct 2018 12:30pm aml recollected que-
1. Meaning of money laundering.
2. India is member of which group?
3. Funnel account-case study

FATF MCQ

Some important MCQ on FATF

1. FATF is an intergovernmental founded in which year?


Ans 1989


2.FATF IS A Initiative of —-?


Ans. G7 summit


3. How many recommendations in FATF?


Ans. 40 on Money Laundering in 1990


09 On Terrorist Financing in 2001


4. President of FATF is a senior official appointed by?


Ans. FATF Plenary


5. FATF President is appointment for how many period?


Ans. For one year


6. Financial year period of FATF President?


Ans. 1st July to 30th June


7. Where is headquarter of FATF?


Ans . Paris ( France)


8.what are the official language of FATF?


Ans. English & French


8. What are the full fledged members of FATF?


Ans. 37(35+2)
35 countries members
02 Regional organisation


9. What are the two regional organisation of FATF?


Ans. 1. EU. European union


2. Gulf corporation council


10. What are the observers of FATF ?


Ans. Israel & Saudi Arabia


11.How many lists are published by FATF?


Ans. 1. Black List -Non-cooperating countries


2. Grey List - High risk& Non cooperative countries


12. Recently Pakistan is listed on which list of FATF?


Ans. Grey List of FATF


13. How many regional FATF?


Ans. 8


14. FATF plenary meets how many times in a year?


Ans. Three times in per year


15.FATF added a new technology term to the vast money laundering lexicon,that is called?


Ans. Cuckoo smurfing


16. What are the initiatives from FATF?


Ans. 1. FIN Tech. 2. Reg Tech


17. When did India became full time membership of FATF?


Ans. Since 2010


18. India is as ————country member of FATF?


Ans . As 34th



19. What are the FATF public document ?


Ans. 1. FATF Public statement


2. Improving Global AML/CFT Complacence


20. FATF Public documents are issued how many times in a year ?


Ans. 3 times in a year


21. What are the typology studies conducted by FATF ?


Ans. 1. Football sector(2009)

2.Free trade zone (2010)

3. Legal professionals (2013)

4.NPO&The Diamond sector(2014)


5. Another area recently on Corruption


22. FATF cell is set up by —-in india ?


Ans. Ministry of finance


23. In india FATF Cell is functioning under which ?


Ans. The department of Economic affairs in ministry of finance


24. When was adopted at a ministerial meeting on the current mandate of FATF 2012-2020. ?
Ans. April 2012


25. 4th Round of mutual Evaluations joint FATF/APG&EAG. Mutual Evacuation of India. What are the tentative dates on site visit?


Ans. In February/March 2021


FATF. - Financial Action Task Force
APG - Asia Pacific Group
EAG - Euro Asian Group

Iibf Exam Review :AML/KYC 15September 2018

1.Difference between Money laundering and terrorist financing

2.which of the following is not  a step of money laundering cycle?

placement

layering

raising

integration

3.which of the following is not a source of financing to terrorist? pg 15

4.which of the following is a member of wolfsberg group

5. which of the following is not a member of wolfsberg group

6.India is a member of which of the following group?-FATF

7.pep pg 41

8.new technologies. pg 42

9.Bank Secracy Act pg 50

10.Austrac pg 52

11.money laundering control act 1986 is under

usa

europe

uk

12.reporting entity means  ... pg 56

13.dept fiu ind

14.Kyc requirement for joint account  with either or survivour- both

15.ovd requirement for trust

16.ovd requirement for company

17.resident definition for pmla is taken from which act

18.beneficial owner

.... table pg 123 qus...

19. timeline to submit of monthly reports is .... 15th of next month

20. timeline for str.. 7dsys

21.reports to fiu ind are sbmitted as... single report..pg 146

22. alert based str pg 147

23 .small account -monthly limit -10000

24.small account based 4option

25.regulated entities.. pg 193

26.under simplified procedure  howmuch time is given for prividing ovd

27.which isnot the work of designated officer

28.ckycr

29. 1 case study from book ...
30.fatf documents how many time in a year . 3times
31.threshold value for company .. 25prcnt pg 93
32.threshold value for trust.. 15 prcnt pg 93
33.india is a member of
apg, catf, eag
34.fatf latest member
35.correspondent banking
36. one acciunt is opened in delhi,cashdeposits from different locations nd withdwals from diff location .. funnel accounts
37.bcbs paper publishmed  in jan 2014 is ... pg 29..
38.Imf pg 26
39.difference betweem aml policy, aml/cft
40.smurfing meaning... deposit in different acc below threshold pg 16

COMBINED AML/KYC IMPORTANT REVIEW AND REVISION TOPICS

Aml kyc recollected questions 1st of September 2018
3 steps of basic money laundering cycle
2 questions on funnel accounts
Connected accounts
1 question on wire transfer
1 question on hawala
Non member of Wolfsburg group
Law in UK related to AML
Around 5 questions on 2017 amendments of pmla (already discussed here in this group)
1 question on NI act
1 question on intermediates ( non-intermediaries of options)
1 question on whether to file STR
1 question on who will decide to file STR
Time limit for STR
1 question on enhanced due diligence
Time limit for freezing accounts
Time limit for kyc updation
1 question on juridical persons
1 question on specific beneficial owner
1 question on small account
1 question on cross border wire transfer
CTR time limit for filling
Which report don't have ceiling limits
STR typology
Staff callousness
Principal officer
Kyc aml interconnectedness

AML/KYC Questions 18Aug 2018
Fatf recommendations,
list of Wolfsberg group composition,
PMLA
STR typologies

IIBF EXAM REVIEW : KYC /AML 4Aug 2018

FATF Rules
2017Anendment Updates.. many questions
Trust related
International AML Act Rules

IIBF AML KYC REVIEW 8 July 2018 Exam
FIU - IND

1.Periodicity of risk categorization,   
2.stages of money laundering 2 marks questions almost 4,
3.desidnated director is designated by?,
4.pmla amendments almost 4 questions,
5.str,                           
6.ccr,                           
7.period of retention of transaction,           
8.which banks is not included in Wolfsburg banks,         
9.responsibility of board of directors and PO,
10.reporting entity, transaction means,
11.person means,       
12.which countries need permission to open account,               
13.egmont group,     
14.which laws r in USA legislation,                   
15.act related to Australia,       
16.freezing of assets power lies with whom.     
17,fiu-ind 2-3 questions, 
18.social impact of m/l,
19.which is not stage in m/l,.                 
20.multiple tier account, pep,                     
21.updation of kyc policy,
22.ckycr assign identifier of whom,             
23.legislation supporting aml measure,           
24.shell bank,       
25.elements of kyc policy,               
26.stages of cip,   
27.simplified due diligence,             
28.utility bill,       
29.proprietary firm,     
30.small ac

Previous recollected qus pdf

SOME FULL FORMS IN AML/KYC

 Central KYC Records Registry” (CKYCR)
Central Identities Data Repository” (CIDR)
Officially Valid Document” (OVD)
Non-profit organisations” (NPO)
Common Reporting Standards” (CRS)
Customer Due Diligence (CDD)
FATCA” means Foreign Account Tax Compliance Act
IGA” means Inter Governmental Agreement
Politically Exposed Persons” (PEPs)
Regulated Entities” (REs)
Scheduled Commercial Banks (SCBs)
Regional Rural Banks (RRBs)
Local Area Banks (LABs)
(Urban) Co-operative Banks (UCBs)
State and Central Co-operative Banks (StCBs / CCBs)
Money Transfer Service Scheme (MTSS)
Payment System Providers (PSPs)

SOME DEFINITIONS

“Shell bank” means a bank which is incorporated in a country where it has no physical presence and is unaffiliated to any regulated financial group.

“Wire transfer” means a transaction carried out, directly or through a chain of transfers, on behalf of an originator person (both natural and legal) through a bank by electronic means with a view to making an amount of money available to a beneficiary person at a bank.

"Principal Officer” means an officer nominated by the RE, responsible for furnishing information as per rule 8 of the Rules.

 “Regulated Entities” (REs) means

• all Scheduled Commercial Banks (SCBs)/ Regional Rural Banks (RRBs)/ Local Area Banks (LABs)/ All Primary (Urban) Co-operative Banks (UCBs) /State and Central Co-operative Banks (StCBs / CCBs) and any other entity which has been licenced under Section 22 of Banking Regulation Act, 1949, which as a group shall be referred as ‘banks’
• All India Financial Institutions (AIFIs)
• All Non-Banking Finance Companies (NBFC)s, Miscellaneous Non-Banking Companies (MNBCs) and Residuary Non-Banking Companies (RNBCs).
• All Payment System Providers (PSPs)/ System Participants (SPs) and Prepaid Payment Instrument Issuers (PPI Issuers)
• All authorised persons (APs) including those who are agents of Money Transfer Service Scheme (MTSS), regulated by the Regulator.

Resident”, as defined under sub-section (v) of section 2 of the Aadhaar Act, means an individual who has resided in India for a period or periods amounting in all to one hundred and eighty-two days or more in the twelve months immediately preceding the date of application for enrolment for Aadhaar;

“Suspicious transaction” means a “transaction” as defined below, including an attempted transaction, whether or not made in cash, which, to a person acting in good faith,:

• gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the Act, regardless of the value involved; or
• appears to be made in circumstances of unusual or unjustified complexity; or
• appears to not have economic rationale or bona-fide purpose; or
• gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism.

SOURCE : RBI CIRCULAR

IIBF Exam Review: AML/KYC 1 September 2018

Aml kyc recollected questions 1st of September 2018
3 steps of basic money laundering cycle
2 questions on funnel accounts
Connected accounts
1 question on wire transfer
1 question on hawala
Non member of Wolfsburg group
Law in UK related to AML
Around 5 questions on 2017 amendments of pmla (already discussed here in this group)
1 question on NI act
1 question on intermediates ( non-intermediaries of options)
1 question on whether to file STR
1 question on who will decide to file STR
Time limit for STR
1 question on enhanced due diligence
Time limit for freezing accounts
Time limit for kyc updation
1 question on juridical persons
1 question on specific beneficial owner
1 question on small account
1 question on cross border wire transfer
CTR time limit for filling
Which report don't have ceiling limits
STR typology
Staff callousness
Principal officer
Kyc aml interconnectedness

KYC: Chapter 4 Transaction Monitoring and Reporting

1. ........ prescribes that banks required to provide information on transactions to the Director,FIU-IND
Ans- PMLA

2. Under which section banks need to furnish the information?
Ans- 12.1.b

3. CTR Full form?
Ans- Cash Transaction Report

4. All cash transaction of .............. need to be reported
Ans - Rs 10 Lakh or above

5. CTR report timeline?
Ans- by 15th of next month

6. Frequency of CTR Report?
Ans- Monthly

7. STR Full form?
Ans- Suspicious Transaction Report

8. STR Frequency?
Ans- As and when

9. Timeline for STR?
Ans- Within 7 days of a transaction determined as suspicious

10. CCR full form?
Ans- Counterfeit Currency report

11. CCR Periodicity?
Ans- Monthly

12. CCR Timeline?
Ans- by 15th of next month

13.NTR Full form?
Ans- Non Profit Organisation  Transaction Report

14. Periodicity of NTR?
Ans- Monthly

15. Timeline for NTR?
Ans- By 15th of next month

16.  CBTR Full form?
Ans- Cross Border Wire Transfer Report

17. In CBTR , all cross border wire transfers of more than............. or its equalent in foreign currency need to be reported?
Ans- Rs 5 lakh

18 CBTR Periodicity?
Ans- Monthly

19. CBTR Timeline?
Ans- By 15th of next month

20.which rule related to delay/ non or improper submition?
Ans- Rule 8.b

21. Who imparts penalty for reporting late or non submition of various reports?
Ans- Director, FIU-IND

22. Abandoned/Aborted transactions should be reported as..STR/NTR/ CBTR/ CCR???
Ans- str

23. Reason for considering a transaction to be of suspicious nature should be recorded by .......... in writing?
Ans- principal Officer



More will be updated later.... in case of any mistake please comment.

AML/KYC ANNEXURE IMPORTANT POINTS : CHAPTER 1

SOME FULL FORMS IN AML/KYC

 Central KYC Records Registry” (CKYCR)
Central Identities Data Repository” (CIDR)
Officially Valid Document” (OVD)

AML/KYC Macmillan PDF

Here sharing link of AML/KYC mcmillan book.

IIBF EXAM REVIEW : KYC /AML 4Aug 2018

FATF Rules
2017Anendment Updates.. many questions

Frequently asked Questions on Prevention On Money Laundering.

Here Sharing a link of PDF on Frequently asked Questions on Prevention On Money Laundering.

Very useful for the basic knowledge

Relevancy : AML/KYC, JAIIB

Frequently Asked Questions Regarding Anti-Money Laundering (AML)

1) What is Money Laundering?

Money Laundering is the process by which, criminals attempt to make the proceeds of crime appear legitimate with no obvious links to their criminal origins. This is achieved by three processes:

1. Placement – Placing of the proceeds of crime
2. Layering – Hiding of the proceeds from their criminal origin by ‘layers’ of transactions
3. Integration – Creating a legitimate explanation for the proceeds

2) Who needs to perform Anti-Money Laundering checks?
Solicitors, accountants, tax advisors, insolvency practitioners, financial institutions, credit institutions, estate agents, chartered surveyors, trust/service providers, gaming companies and high value dealers with the potential for a business relationship worth over 15,000 Euros, such as automotive dealers and jewellers.

3) Why do I need to perform Anti-Money Laundering checks?

The Anti-Money Laundering regulations are governed by 4 Acts: The Proceeds of Crime Act, The Serious Organised Crime and Police Act, The Terrorist Act and the Money Laundering Regulations. . Failure to report suspicious activity can carry a criminal sentence and lead to substantial fines from the relevant regulatory body.

4) I have dealt with my clients for many years , do I still need to carry out Customer Due Diligence?

You need to keep CDD up-to-date for all your clients. You may  have sufficient documentary ID details on your files but if there has been any subsequent change to their circumstances or risk profile, you should update your CDD. It is advised to review clients’ CDD on a regular basis.

5) Who enforces the Anti-Money Laundering regulations?

The AML regulations are enforced by a range of regulatory bodies. Guidelines are set by the JMLSG (Joint Money Laundering Steering Group) and enforced by the FCA/PRA (Financial Conduct Authority/ Prudential Regulation Authority), the SRA (Solicitors Regulation Authority in England), OFT (Office of Fair Trading), HMRC (HM Revenue & Customs), ICAEW (Institute of Chartered Accountants in England & Wales, plus other Accountancy bodies), RICS (Royal Institute of Chartered Surveyors) and more.

6) What is Electronic Verification?

In order to prevent fraud and money laundering it is important to verify individuals carrying out financial transactions. Previously documentary evidence was relied on to verify an individual. These may not always be available and they can also be easily forged or altered therefore electronic verification provides extra security and reduces risk against money laundering and fraud.

Electronic verification removes the need for the customer to be present, this saves time and helps support customer relationship building. The risk of money laundering is reduced as several data sources are called upon to verify the customer rather than just relying on documentary evidence.

7) If I collect Passports and Driving Licences, why do I need to check anything else?
EV can check a wider range of information, thus providing a more thorough knowledge of your client (KYC – Know Your Customer). In addition, it can also enable you to check other data sets such as PEPS and Sanctions lists, which is advisable and specified by the 3rd European Money Laundering Directive. 
With fraudulent documentation on the rise, there is a need to refocus efforts on identifying them. Electronic verification is designed to remove the risk of receiving potentially fraudulent documents; therefore you can have a greater level of confidence in their authenticity. Various checks are carried out on the documents to confirm as much as possible, therefore reducing the risk of ID fraud.

8) Online systems are too expensive, what if I cannot afford it?

There are often hidden costs associated with taking paper documents, which are not always immediately recognisable. For example, if dealing with a client at distance, the posting through of important documents by recorded delivery in order to ensure they do not get lost carries a charge, which is often more than the cost of an electronic search. If the documents are then lost, there is then the cost of replacing the documents for your potential client. This may also be more time-consuming as a process, but by performing a quick electronic search, could this then allow for more searches to be performed and in turn, increase the number of clients taken onboard?

9) Why are you allowing me to see sensitive information?

The information held in electronic systems is consented for use in these systems. For an AML check, the Full Electoral Roll is allowed for this purpose and this is covered in the Representation of the People Act (2002). When a Credit Reference Agency (CRA) utilises financial records in an AML check, it does not show any financial details, apart from the information necessary to ID someone.

10) What are Politically Exposed Persons, Specially Designated Nationals and Financial Sanctions and why do I need to check them?
It is recommended by the 3rd European Money Laundering Directive  to have a procedure in place to check PEPs, SDNs and the HMT Financial Sanctions.  A PEP is a Politically Exposed Person, and is someone who holds a prominent public position, or an individual linked to them. An SDN is a Specially Designated National , on a list which specifies that US Citizens are not permitted to conduct business with them. The HM Treasury Financial Sanctions list specifies individuals with whom it is prohibited to transfer or make funds available to.

What is Money Laundering ??

Money laundering is an act of converting illegal money to legal money. By illegal money we mean the money which has come from illegal sources of earning money like smuggling, any terrorist activity, drug trade, etc.

A person who is found having money from illegal sources can be made to go to prison, or any other liable punishment. So the persons or rather criminals try to convert their illegal money to legal money so that their money appears clean which is known as money laundering.

The banks have also been directed to look into this matter like if they find any suspicious activity in an account or there is huge transaction of money from an account, etc.
There are three stages in which money laundering is done which we will discuss later.

Before that some of the methods of converting illegal money to legal money as the criminals follow include

• doing investments in property or any business,
• multiple transfers of money in various bank accounts or from one place to another,
• used for purchasing foreign currency and then  back to own currency,
• repayment of loans and credit cards,
• through political parties, corporate companies and the shares market, etc.

The three stages of money laundering are:

• Placement Stage: As the name suggests, the first stage is pacing the money into the system by the methods provided above. Placing money in bank accounts, smuggling money to abroad, etc.
• Layering Stage: The main aim of this stage is to separate the illegal company from its source. In this stage the money placed in transferred to other accounts. The money is then distributed among various investments, like some in a business, some in charity, investments in share markets, etc.
• Integration Stage: Integration means joining. So in last stage of money laundering, the whole illegal money which was divided at various places in layering stage starts getting integrated into a single account so that the money now appears to have come from legal sources i.e. from businesses in the country, from share markets, any profits, etc.

If the money reaches the last stage, it appears to have come from legal sources and does not draw any attention of being illegal money.

To study the issue, in 2002, an act was passed by the Parliament of India called the Prevention of Money laundering Act 2002.

According to Section 3 of the act: “Whosoever directly or indirectly attempts to indulge or knowingly assists or is involved in any process or activity connected with the proceeds of crime and is projecting it as the untainted property shall be guilty of the offence of money laundering”.

A step to prevent money laundering is Know Your Customer (KYC) policy. The KYC helps to ensure that banks’ services are not misused.

IIBF AML/KYC A-Z Guide

Here sharing important links of AML/KYC Certification Exam.

Happy Reading :)

AML/KYC Mix Questions

This post will be updated with time with addition of more questions . 

Keep Reading :)

FULL FORMs:  FATF, AML, CET, CDD, PMLA, CIP, FIU IND

FATF : Financial Action Task Force
AML : Anti Money Laundering
CFT : Combatting Financing of Terrorism
CDD: Customer Due Diligence
PMLA : Prevention of Money Laundering
CIP : Customer Identification Procedure
FIU IND : Financial Intelligence Unit India

RBI Master Direction - Know Your Customer (KYC) Direction, 2016

SOURCE : RBI 

DIRECT LINK : CLICK HERE

DOWNLOAD LINK : CLICK HERE

RBI Master Circular – Know Your Customer (KYC) norms / Anti-Money Laundering (AML) standards/Combating of Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002

Here sharing RBI MASTER CIRCULAR – Know Your Customer (KYC) norms / Anti-Money Laundering (AML) standards/Combating of Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002

SOURCE: RBI WEBSITE

DOWNLOAD LINK

LINK OF OTHER MASTER CIRCULARS : CLICK HERE

BANKING MATERIALS : KYC

Know Your Customer Guidelines

(This is a summarised and simplified version of the Reserve Bank of India's Know Your Customer guidelines.)

Q 1. What is KYC? Why is it required?
Response: KYC means "Know Your Customer". It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks' services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same.

Q 2. What are the KYC requirements for opening a bank account?
Response: To open a bank account, one needs to submit a 'proof of identity and proof of address' together with a recent photograph.

Q3. What are the documents to be given as 'proof of identity' and 'proof of address'?
Response: The Government of India has notified six documents as 'Officially Valid

Documents (OVDs) for the purpose of producing proof of identity. These six documents are Passport, Driving Licence, Voters' Identity Card, PAN Card, Aadhaar

Card issued by UIDAI and NREGA Card. You need to submit any one of these documents as proof of identity. If these documents also contain your address details, then it would be accepted as as 'proof of address'. If the document submitted by you for proof of identity does not contain address details, then you will have to submit another officially valid document which contains address details.

Q 4. If I do not have any of the documents listed above to show my 'proof of identity', can I still open a bank account?
Response: Yes. You can still open a bank account known as 'Small Account' by submitting your recent photograph and putting your signature or thumb impression in the presence of the bank official.

Q 5. Is there any difference between such 'small accounts' and other accounts?
Response: Yes. The 'Small Accounts' have certain limitations such as:
balance in such accounts at any point of time should not exceed ₹50,000
total credits in one year should not exceed ₹1,00,000
total withdrawal and transfers should not exceed ₹10,000 in a month.
Foreign remittances cannot be credited to such accounts.

Such accounts remain operational initially for a period of twelve months and thereafter, for a further period of twelve months, if the holder of such an account

provides evidence to the bank of having applied for any of the officially valid documents within twelve months of the opening of such account. The bank will review such account after twenty four months to see if it requires such relaxation.

Q 6. Would it be possible, if I do not have any of the officially valid documents, to have a bank account, which is not subjected to any limitations as in the case of 'small accounts'?
Response: A normal account can be opened by submitting a copy of any one of the following documents:

(i) Identity card with person's photograph issued by Central/State Government

Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions;

or

(ii) letter issued by a gazetted officer, with a duly attested photograph of the person.

This, however, is not a general rule and it is left to the judgement of the banks to decide whether this simplified procedure can be adopted in respect of any customer.

Q 7. If I refuse to provide requested documents for KYC to my bank for opening an account, what may be the result?
Response: If you do not provide the required documents for KYC, the bank may not be able to open your account.

Q 8. Can I open a bank account with only an Aadhaar card?
Response: Yes, Aadhaar card is now accepted as a proof of both, identity and address.

Q 9. What is e-KYC? How does e-KYC work?
Response: e-KYC refers to electronic KYC.

e-KYC is possible only for those who have Aadhaar numbers. While using e-KYC service, you have to authorise the Unique Identification Authority of India (UIDAI), by explicit consent, to release your identity/address through biometric authentication to the bank branches/business correspondent (BC). The UIDAI then transfers your data comprising name, age, gender, and photograph of the individual, electronically to the bank/BC. Information thus provided through e-KYC process is permitted to be treated as an 'Officially Valid Document' under PML Rules and is a valid process for KYC verification.

Q 10. Is introduction necessary while opening a bank account?
Response: No, introduction is not required.

Q 11. If I am staying in Chennai but if my address proof shows my address of New Delhi, can I still open an account in Chennai?
Response: Yes. You can open a bank account in Chennai even if your permanent address is in New Delhi and you do not have a proof of address for your Chennai. In that case, you can submit an officially valid document (proof of address document) of your New Delhi address together with a declaration about your Chennai address, for communication purposes.

Q 12. Can I transfer my existing bank account from one place to another? Do I need to undergo full KYC again?
Response: Yes, it is possible to transfer an account from one branch to another branch of the same bank. There is no need for KYC exercise again to transfer a bank account from one branch to another branch of the same bank. However, if there is a change of address, then you would have to submit a declaration about the current address. If the address in the 'officially valid documents'/ 'proof of address' is neither permanent nor current address, a new proof of address would be required within six months. In case of opening an account in another bank, however, you would have to undergo KYC exercise afresh.

Q 13. Do I have to furnish KYC documents for each account I open in a bank even though I have furnished the documents of proof of identity and address?
Response: No, if you have opened an account with a bank, which is KYC compliant, then for opening another account with the same bank, furnishing of documents is not necessary.

Q 14. For which banking transactions do I need to quote my PAN number?
Response:PAN number needs to be quoted for transactions, such as, account opening, transactions above ₹50,000 (whether in cash or non-cash), etc. A full list of transaction where PAN number needs to be quoted can be accessed from website of Income Tax Department at the following URL:

http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITRU&schT=rul&csId=2 1533008-bbb4-4f86-b609-9296e8b5223e&rNo=114B&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

Q 15. Whether KYC is applicable for Credit/Debit/Smart/Gift cards?
Response:Yes. Full KYC exercise is necessary for Credit/Debit/Smart/for purchaser of Gift Cards and also in respect of add-on/ supplementary cards.

Q 16. I do not have a bank account. But I need to make a remittance. Is KYC applicable to me?
Response:Yes. KYC exercise needs to be done for all those who want to make domestic remittances of ₹ 50,000 and above and all foreign remittances.

Q 17. Can I purchase a Demand Draft/Payment Order/Travellers Cheque against cash without KYC?
Response:Demand Draft/Payment Order/Travellers Cheques for ₹50,000/- and above can be issued only by way of debiting the customer's account or against cheques.

Q 18. Do I need to submit KYC documents to the bank while purchasing third party products (like insurance or mutual fund products) from banks?
Response:Yes, all customers who do not have accounts with the banks (known as walk-in customers) have to produce proof of identity and address while purchasing third party products from banks if the transaction is for ₹50,000 and above. KYC exercise may not be necessary for bank's own customers for purchasing third party products. However, instructions to make payment by debit to customers' accounts or against cheques for remittance of funds/issue of travellers' cheques, sale of gold/silver/platinum and the requirement of quoting PAN number for transactions of ₹50,000 and above would be applicable to purchase of third party products from banks by bank's customers as also to walk-in customers.

Q 19. My KYC was completed when I opened the account. Why does my bank insist on doing KYC again?
Response:Banks are required to periodically update KYC records. This is a part of their ongoing due diligence on bank accounts. The periodicity of such updation would vary from account to account or categories of accounts depending on the bank's perception of risk. Periodical updation of records also helps prevent frauds in customer accounts.

Q 20. What are the rules regarding periodical updation of KYC?
Response:Different periodicities have been prescribed for updation of KYC records depending on the risk perception of the bank. KYC is required to be done at least every two years for high risk customers, at least every eight years for medium risk customers and ten years for low risk customers. This exercise would involve all formalities normally taken at the time of opening the account.

If there is no change in status with respect to the identity (change in name, etc.) and/or address, such customers who are categorised as 'low risk' by the banks may

now submit a self-certification to that effect at the time of periodic updation.

In case of change of address of such 'low risk' customers, they could merely forward a certified copy of the document (proof of address) by mail/post, etc. Physical presence of such low risk customer is not required at the time of periodic updation.

Customers who are minors have to submit fresh photograph on becoming major.

Q 21. What if I do not provide the KYC documents at the time of periodic updation?
Response:If you do not provide your KYC documents at the time of periodic updation bank has the option to close your account. Before closing the account, the bank may, however, impose 'partial freezing' (i.e. initially allowing all credits and disallowing all debits while giving an option to you to close the account and take your money back).

Later even all credits also would not be allowed. The 'partial freezing' however, would be exercised by the bank after giving you due notice.

Q 22. How is partial freezing imposed?
Response:Partial freezing is imposed in the following ways:
While imposing 'partial freezing', banks have to give due notice of three months initially to the customers before exercising the option of 'partial freezing'.
After that a reminder for further period of three months would be issued.
Thereafter, banks may impose 'partial freezing' by allowing all credits and disallowing all debits with the freedom to close the accounts.
If the accounts are still KYC non-compliant after six months of imposing initial 'partial freezing' banks may disallow all debits and credits from/to the accounts, rendering them inoperative.
Thus, one year after the account is due for updation, if you do not provide the necessary documents/information, your account would become fully inoperative i.e, neither credits nor debits would be allowed in the account.

Meanwhile, the account holders can revive accounts by submitting the KYC documents.

BANKING MATERIALS : KNOW YOUR CUSTOMER

Know your customer (alternatively know your client or 'KYC') is the process of a business verifying the identity of its clients and assessing potential risks of illegal intentions for the business relationship. The term is also used to refer to the bank regulations and anti-money laundering regulations which govern these activities. Know your customer processes are also employed by companies of all sizes for the purpose of ensuring their proposed agents, consultants, or distributors are anti-bribery compliant. Banks, insurers and export creditors are increasingly demanding that customers provide detailed anti-corruption due diligence information.

IIBF AML KYC REVIEW 8 July 2018 Exam

Passing Marks Required : 60
No Negative Marking

FIU - IND

1.Periodicity of risk categorization,     
2.stages of money laundering 2 marks questions almost 4, 
3.desidnated director is designated by?, 
4.pmla amendments almost 4 questions, 
5.str,                             
6.ccr,                             
7.period of retention of transaction,             
8.which banks is not included in Wolfsburg banks,           
9.responsibility of board of directors and PO, 
10.reporting entity, transaction means,
11.person means,         
12.which countries need permission to open account,                 
13.egmont group,       
14.which laws r in USA legislation,                     
15.act related to Australia,         
16.freezing of assets power lies with whom.       
17,fiu-ind 2-3 questions,   
18.social impact of m/l, 
19.which is not stage in m/l,.                   
20.multiple tier account, pep,                       
21.updation of kyc policy, 
22.ckycr assign identifier of whom,               
23.legislation supporting aml measure,             
24.shell bank,         
25.elements of kyc policy,                 
26.stages of cip,     
27.simplified due diligevnce,               
28.utility bill,         
29.proprietary firm,       
30.small ac

Shared By :Aravind S
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TIP & View by members :
Focus on stages on money laundering and reports.it contains 15 to 20 marks.
Many qtns of 2 marks wl be asked from stages of money laundering.

Paper was difficult & twisted.

IIBF AML/KYC Canara Bank Material

Here sharing link of AML/KYC canara Bank Material.

Click Here

Happy Reading :)