Aml 004 PDF
Aml 004 PDF
Invalid
∙ Risk profiles of customer segments should be submitted to the board of directors of the
bank
FALSE
Charity
Audit committee
∙ KYC procedures will be applicable to existing customers only if the risk profile of the
customer or customer segment changes from low to high
TRUE
∙ Which section of the PMLA talks about the powers of the director to impose fines
Section 13
Drug trafficking
∙ Money laundering is
∙ A bank which doesn`t have any physical presence in any country is called
Shell bank
∙ The stage where clean money is mixed with illegal money to disguise it further is called
Layering
∙ Multiple accounts set up by the same person with standing instructions is called
Walkin accounts
∙ Companies that are set up according to the laws of the land but do not do any real
business are called
Shell corporations
∙ Transactions that are inconsistent with the customer`s known legitimate activities are
called
Suspicious transactions
∙ According to PMLA obligations the records of the transactions should be maintained for
10 years
∙ Which section of the PMLA talks about procedure and manner of furnishing information
Section 15
Section 13
∙ The policy is applicable to all activities of the bank including all SBU`s in India and
abroad
True
Furthers integration
Section 14
∙ At what point it is difficult for the bank to distinguish between legal and illegal funds
Integration
∙ Clause (b) of sub section (1) of section 12 of PMLA states that banking
companies/financial institutions/intermediaries should furnish information to
MRLO WRONG
∙ Each SBU will develop appropriate measures for transaction processing in consultation
with
MLRO
Business recycling
15 WRONG
Smurfing WRONG
∙ According to RBI guidelines branches should intimate their controlling offices about
cash transactions above
Rs 1 million
HR policies
e-circular
MLRO
Electronic transfers
∙ Process whereby people send each other money without going through the banking
system is called
∙ ICICI bank will have proper record maintenance policies and procedures in place to
∙ Illegal activity where stacks of gold, cash, jewllery or even rare stamps are moved from
place to place is called
Smuggling
∙ Before offering its services to its correspondent banks ICICI bank will
Check whether the correspondent bank complies with an acceptable money laundering
program
MLRO
Offshore banks
∙ Facilities provided by the bank for the transfer of money via electronic media are called
Electronic transfers
∙ When a customer moves from a low risk to high risk the approach used is
Both
∙ Which section of the PMLA talks about banking companies, financial institutions and
intermediaries should maintain records
Section 12
∙ Common means of integrating money into the financial system is
6/24/1905
FATF
Customer makes or receives huge deposits or remittances along with pre-closure of loans
payments of previous over dues
∙ This document is accepted as an identity proof at the time of opening the account
Driving license
∙ FATF provides guidelines for anti money laundering policies and procedures at
Three levels
40
True
Integration stage
Both WRONG