Top 20 Questions for Anti Money Laundering Certification in India

Smurfing is a method adopted to avoid:

• a) Regulatory reporting requirements
• b) Suspicious activities
• c) Excessive deposits in bank accounts
• d) None of the above
• Ans: a) Regulatory reporting requirements

Use of multiple cash deposits each smaller than the minimum cash reporting requirements is called:

• a) Smuggling
• b) Smurfing
• c) Money laundering
• d) None of the above
• Ans: b) Smurfing

Illegal activity where stacks of gold, cash, jewelry, or even rare stamps are moved from place to place is called:

• a) Smurfing
• b) Smuggling
• c) Money hiding
• d) None of the above
• Ans: b) Smuggling

The stage where clean money is mixed with illegal money to disguise it further is called:

• a) Layering
• b) Integration
• c) Trafficking
• d) None of the above
• Ans: a) Layering

What does reselling and repurchasing assets for laundering money do:

• a) Furthers integration of illegal funds
• b) Exposes the crime
• c) Boosts the economy
• d) None of the above
• Ans: a) Furthers integration of illegal funds

Common means of integrating money into the financial system is:

• a) Business recycling
• b) Opening multiple accounts
• c) Export-import transactions
• d) None of the above
• Ans: c) Export-import transactions

Which of the following is not a source of illegal money:

• a) Drug trafficking
• b) Smuggling
• c) Charity
• d) None of the above
• Ans: c) Charity

At what point is it difficult for the bank to distinguish between legal and illegal funds?

• a) Layering
• b) Integration
• c) Placement
• d) None of the above
• Ans: b) Integration

Customer identification procedures fall under which aspect of money laundering regulations:

• a) Know your customer (KYC)
• b) Compliance with law
• c) Internal policies and procedures
• d) None of the above
• Ans: a) Know your customer (KYC)

Transactions that are inconsistent with the customer’s known legitimate activities or nature of business are called:

• a) Null transactions
• b) Erratic transactions
• c) Suspicious transactions
• d) None of the above
• Ans: c) Suspicious transactions

Central National Agency set up by the government which is responsible for receiving, processing, analyzing, and disseminating information relating to suspicious transactions.

• a) AML Cell
• b) FIU-IND
• c) RBI
• d) None of the above
• Ans: b) FIU-IND

As per the regulations of the RBI, tipping off is an offense and the employees should be cautious not to violate this during their interaction with the customer in the process of conducting EDD.

• a) True
• b) False
• c) Not mentioned
• d) None of the above
• Ans: a) True

Informing/communicating to the customers (directly or indirectly) that his account has been or would be reported to the regulators for suspicious activity or name match amounts to:

• a) Smurfing
• b) Wilful blindness
• c) Tipping Off
• d) Structuring
• Ans: c) Tipping Off

According to PMLA obligations, the records of the transactions should be maintained for:

• a) 6 years
• b) 15 years
• c) 5 years
• d) None of the above
• Ans: c) 5 years

Which section of the PMLA talks about the procedure and manner of furnishing information:

• a) Section 14
• b) Section 15
• c) Section 13
• d) None of the above
• Ans: b) Section 15

Section 12 A of PMLA states the obligations of reporting entities to furnish information to:

• a) FIU-Director
• b) Compliance officer
• c) MRLO
• d) None of the above
• Ans: a) FIU-Director

PMLA was enacted in:

• a) 2002
• b) 2005
• c) 2009
• d) None of the above
• Ans: a) 2002

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

• a) Compliance officers
• b) MLRO
• c) Bankers
• d) None of the above
• Ans: c) Bankers

Which provision under PMLA gives immunity to banking companies, financial institutions, intermediaries, and their officers not to be liable to any civil proceedings against them for furnishing information laid down in:

• a) Section 12
• b) Section 13
• c) Section 14
• d) None of the above
• Ans: c) Section 14

Regulations empowering the director to levy a fine or order on banking companies financial institutions or intermediaries for failure to comply with provisions of section 12 are laid down in the:

• a) Section 15
• b) Section 13
• c) Section 14
• d) None of the above
• Ans: b) Section 13

As per the Group AML Policy, the period of maintenance of records of transactions and customer identification data is:

• a) 8 years
• b) 5 years
• c) 10 years
• d) None of the above
• Ans: b) 5 years

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 ₹ in a year.

• a) ₹1 Lakh
• b) ₹2 Lakh
• c) ₹50,000/-
• d) None of the above
• Ans: a) ₹1 Lakh