∙ FATF guidelines are intended to meet

Customer due diligence procedure

∙ Photo debit card of the customer is used for

Invalid

∙ Risk profiles of customer segments should be submitted to the board of directors of the
bank

FALSE

∙ According to FATF money laundering is

Processing of criminal proceeds in order to disguise their illegal origin

∙ This is not a sources of funds for illegal money

Charity

∙ Above the AML framework is

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

∙ Customer identification procedure for legal person is

Identity of authorized signatories

∙ Which section of the PMLA talks about the powers of the director to impose fines

Section 13

∙ Which of these is not non banking method of laundering money

Drug trafficking

∙ Money laundering is

Converting legal money into illegal money

∙ Cooperation with law enforcement agencies means

∙ A bank which doesn`t have any physical presence in any country is called

Shell bank

∙ Internal controls must be adequately supplemented by

Effective audit function

∙ 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

∙ Regulations empowering the director to levy a fine or order on banking companies or

Section 13

∙ The policy is applicable to all activities of the bank including all SBU`s in India and
abroad
True

∙ Financial transactions that are not in compliance with law are to be

Compared with negative lists maintained by the govts WRONG

∙ Collating and maintaining AML records is the responsibility of

SBU compliance officer

∙ what does reselling and repurchasing assets for laundering money do

Furthers integration

∙ Which section of the PMLA talks about civil proceedings

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

∙ Appointing a compliance officer within a organization falls under which aspect of

Cooperation with law enforcement agencies== Compliance with law== WRONG

∙ Customer identification procedures fall under which aspect of money laundering

Know your customer (KYC)

∙ Each SBU will develop appropriate measures for transaction processing in consultation
with

MLRO

∙ Laundering money by putting it in cash intensive businesses like restaurants is called

Business recycling

∙ Money laundering is usually carried out in

∙ How many special regulations were issued to combat terrorist financing

15 WRONG

∙ What forms an integral part of ICICI bank`s group AML policy

Customer verification procedure WRONG

∙ Separating the funds from their illegal source is called

Smurfing WRONG

∙ According to RBI guidelines branches should intimate their controlling offices about
cash transactions above

Rs 1 million

∙ Before employing temporary or outsourced people ICICI bank adheres to

HR policies

∙ Detailed guidelines on identification of suspicious transactions is given to the

e-circular

∙ Person responsible for monitoring day-to-day implementation of ICICI bank`s groups

MLRO

∙ This means also features in the placement methods of laundering money

Electronic transfers

∙ Process whereby people send each other money without going through the banking
system is called

Smuggling == Smurfing== WRONG

∙ ICICI bank will have proper record maintenance policies and procedures in place to

Ensure required documents are available within reasonable period of time

∙ Banks are required to apply basic due diligence for

∙ 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

∙ Who reviews and approves risk profiling of various product segments

MLRO

∙ In submitting information to MLRO all SBUs must use

Specific forms and formats

∙ This is the preferred means of laundering money accumulated by tax evasion

Offshore banks

∙ Facilities provided by the bank for the transfer of money via electronic media are called

Electronic transfers

∙ Internal controls must be adequately supplemented by

Effective audit function

∙ SBU compliance officer also does

Making specific request to MLRO

∙ When a customer moves from a low risk to high risk the approach used is

Enhanced due diligence

∙ The bank`s approach for establishing a customer behavior pattern includes

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

Export import transactions

∙ MLRO will submit the quarterly report to

BoD of the Subsidiary

∙ Information of the violation of the provisions of section 12 is provided to the director by

Compliance officers== Bankers== WRONG

∙ PMLA was enacted in

6/24/1905

∙ Which intergovernmental body develops promotes anti money laundering guidelines

FATF

∙ Basic due diligence is an approach the bank takes to

Identify and verify customers

∙ Regulations stating that banking companies, financial institutions, intermediaries and

Section 12 == Section 13== WRONG

∙ Effective element of a Know your customer (KYC) procedure is

Customer identification== Customer verification== WRONG

∙ This is a suspicious transaction

Customer makes or receives huge deposits or remittances along with pre-closure of loans
payments of previous over dues

∙ All SBUs must implement necessary procedures and controls to ensure

Compliance with law WRONG

∙ 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

∙ ICICI bank maintains records on customer transactions in order to

Submit to RBI WRONG

∙ FATF guidelines consist of how many regulations

40

∙ Adequate diligence is the fundamental requirement for any business transaction

True

∙ The stage where legitimate explanation is given to illegitimate funds is called

Integration stage

∙ Driving license of the customer is used for

Both WRONG