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AML KYC Mock Test

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AML KYC Mock Test
AML KYC Mock Test

AML KYC Mock Test

Your Score 76.00%

38 of 50 questions are answered correctly

80%

Answer Sheet

Q1) maximum retention period of the bank records in case of suspicious transactions is:

1.  15 years

2.  10 years

3.  7 years

4.   5 years

Explanation:-

As per RBI -
    “6. Retention of records of transactions– The records referred to in rule 3 shall be maintained for a period of ten years from the date of
transactions between the client and the banking company, financial institution or intermediary, as the case may be.”.

Q2) submission of details of PAN is compulsory for fixed deposits, TT, rupee TC etc if the amount exceeds

1.  Rs 10000

2.  Rs 25000

3.   Rs 50000
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 4.  No such limit

Q3) Which one of the following is a valid document available to the bank for customer identification (Non-Minor)?

1.  Bank statement of account

2.  Ration Card

3.   Election ID card

4.  Photograph

Explanation:-

Election ID card is a valid document available to the bank for customer identification as it has got the customer

Q4) Who has the ultimate responsibility to ensure that reporting obligations under PMLA are met

1.  Board of directors

2.  Designated director

3.   Principal officer

4.  None of these

Q5) The Financial Action Task Force on Money Laundering in South America (GAFISUD) was established in ____________.

1.  Dec 2017

2.   Dec 2000

3.  Dec 1999

4.  Dec 1997

Explanation:-

The purpose of the Financial Action Task Force of Latin America, GAFILAT, (formerly known as Financial Action Task Force of South America
(GAFISUD)) is to work toward developing and implementing a comprehensive global strategy to combat money laundering and terrorist
financing as set out in the FATF Recommendations.  The effort includes encouraging the creation of the offence of money laundering in
relation to serious crimes, the development of legal systems to effectively investigate and prosecute these offences, the establishment of
systems for reporting suspicious transactions, the promotion of mutual legal assistance.  GAFILAT also fosters the training of persons
involved in anti-money laundering efforts.  GAFILAT enables regional factors to be taken into account in the implementation of anti-money
laundering measures.

The origins of GAFILAT go back to ongoing efforts to integrate anti-money laundering efforts in South America and was encouraged by the
creation of other anti money-laundering regional groups that were established following the FATF model.  It was created as GAFISUD on 8
December 2000 in Cartagena, Colombia by means of a memorandum of understanding by representatives of the governments of nine South
American countries.  The Organization of American States (OAS) is also a member in an advisory capacity through the Inter-American
Commission against Drug Abuse (CICAD).  Following the events of 11 September 2001, GAFISUD expanded its scope to include the
countering of terrorist financing. The GAFISUD Plenary of 7-11 July 2014 approved the change of name from GAFISUD to GAFILAT to reflect
the expansion of its membership to include all Latin American countries. 

GAFILAT is committed to carrying out mutual evaluations and co-ordinating anti-money laundering training and educational efforts in the
region.  Its work mandate is set out in a memorandum of understanding containing specific terms of reference for the group.  GAFILAT is
supported by a Secretariat, which serves as the focal point for its activities.

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Q6) What is usually excluded from KYC updation exercise

1.  Cash Credit

2.  Overdrafts

3.  Credit Cards

4.   home loans

Explanation:-

Home loans are excluded from KYC updation exercise as they are long term financial instrument which have all requisite KYC details and
which will not change in short span of time.

Q7) According to RBI, CTR by branches to their controlling offices should be submitted on:

1.  Mid-term basis

2.   Monthly basis

3.  Yearly basis

4.  FALSE

Explanation:-

As per RBI
 In paragraph 6(I)(a) of our circular dated February 15, 2006, referred to above, banks were advised to make Cash Transaction Reports (CTR)
to FIU-India for every month latest by 15th of the succeeding month. It is further clarified that cash transaction reporting by branches to their
Principal Officer should invariably be submitted on monthly basis (not on fortnightly basis) and the Principal Officer, in turn, should ensure to
submit CTR for every month to FIU-IND within the prescribed time schedule.

Q8) which of these is the biggest potential risk area?

1.  Cash machines

2.  Cheque books

3.   Mobile banking

4.  Shares

Q9) What are not the responsibility of the senior management

1.  Internal Reporting Procedures

2.  Managing the risk of money laundering

3.  Appointment of PO

4.   None of these

Explanation:-

The responsibility of the senior management includes all listed options i.e.  appointment of  PO, managing the risk of money laundering and
internal reporting procedures

Q10) ________________ are fake companies that appear on paper, but may not physically exist.
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1.  Hawala Systems Get Govt. Certified
 2.  Offshore Banking

3.  Front Companies

4.   Shell Companies

Explanation:-

A shell corporation is a company which serves as a vehicle for business transactions without itself having any significant assets or
operations. Some shell companies may have had operations, but those may have shrunk due to unfavorable market conditions or company
mismanagement. A shell corporation is a corporation without active business operations or significant assets. Shell corporations are not
necessarily illegal or illegitimate, as they often serve an important for potential startups. Additionally, shell corporations can act as a tax
avoidance for legitimate businesses.

Q11) Shell bank is the one:

1.  On whose behalf another bank acts in financial market.

2.   No physical presence and not affiliated to financial institution.

3.  Provides services on behalf of another financial institution.

4.  Used by domestic banks in order to service transactions.

Explanation:-

A shell bank is a financial institution that does not have a physical presence in any country.

Q12) identify the KYC element which best relates to the stated practice, well developed and applied customer assessments enable
identification and classification of potentially high risk customers:

1.  Accounts and transaction monitoring

2.  Customer identification

3.   Customer acceptance

4.  Risk management

Explanation:-

One of the most important components of BSA/AML compliance is a Customer Identification Program (CIP). After all, money laundering is
done by people who do not want to be discovered, and most of them pose as legitimate customers. The shorthand phrase “Know Your
Customer” (KYC) means that a financial institution has to have a reasonable belief based on due diligence that its customers are who they
say they are and are acting within the legal framework.

The first requirement is to have a thorough understanding of BSA requirements, broadly conceived to include all the applicable laws and
regulations. Knowing these will enable you to investigate potential customers for relevant risk factors. Beyond basic identity and records
requirements, applicable regulations may target certain currency transactions, potential structuring techniques, identifying types of
suspicious activity, and so forth.

A compliant CIP has three major components to due diligence: planning and implementation, oversight and accountability, and independent
auditing. Each of these may be more or less complex depending on the financial institution’s business lines, size, structure, and risk profile.
The regulatory agencies, such as FinCEN, expect your institution’s compliance program to be unique to it on a risk-adjusted basis, but they
will look at the components of a CIP to ensure they are effective.

Q13) Letter of thanks is sent to introducer because it is:

1.  
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 Assisting banks in verification of genuineness or otherwise of the address

2.  Recommended by the auditors of the bank

3.  Laid down in bank manual

4.  A routine practice followed by banks for years

Explanation:-

A letter of thanks or thank-you letter is a letter that is used when one person/party wishes to express appreciation to another. Personal thank-
you letters are sometimes hand-written in cases in which the addressee is a friend, acquaintance or relative.
In  case  of  need,  Branch  Manager  can  depute  an  official  to  visit  the  account  holder  at  the  given address to satisfy about the
genuineness of the address.

Q14) Who files a report onward to the FIU-IND if the bank concludes that a transaction is suspicious

1.  Internal audit control team

2.  Senior management

3.   PO

4.  None of these

Explanation:-

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

    The Principal Officer shall be responsible for ensuring compliance, monitoring transactions, and sharing and reporting information as
required under the law/regulations.

    The name, designation and address of the Principal Officer shall be communicated to the FIU-IND.

Q15) In accordance with AML-KYC, what is the full form of CCB ?

1.   China Construction Bank

2.  Central Co-operative Bank

3.  Central Carolina Bank

4.  None of these

Explanation:-

CCB refers to Central Co-operative Bank

Q16)

Please read the KYC practice given below. Identify the KYC element which best relates to the stated practice.

Well-developed and applied customer assessments enable identification and classification of potentially high-risk customers. This is known as
_____________.

1.   accounts and transaction monitoring

2.  customer identification
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 3.  customer acceptance

4.  risk management

Explanation:-

One of the most important components of BSA/AML compliance is a Customer Identification Program (CIP). After all, money laundering is
done by people who do not want to be discovered, and most of them pose as legitimate customers. The shorthand phrase “Know Your
Customer” (KYC) means that a financial institution has to have a reasonable belief based on due diligence that its customers are who they
say they are and are acting within the legal framework.

The first requirement is to have a thorough understanding of BSA requirements, broadly conceived to include all the applicable laws and
regulations. Knowing these will enable you to investigate potential customers for relevant risk factors. Beyond basic identity and records
requirements, applicable regulations may target certain currency transactions, potential structuring techniques, identifying types of
suspicious activity, and so forth.

A compliant CIP has three major components to due diligence: planning and implementation, oversight and accountability, and independent
auditing. Each of these may be more or less complex depending on the financial institution’s business lines, size, structure, and risk profile.
The regulatory agencies, such as FinCEN, expect your institution’s compliance program to be unique to it on a risk-adjusted basis, but they
will look at the components of a CIP to ensure they are effective.

Q17) the customer is not aware of the transactions in the account, what kind of suspicion is it?

1.  Account of wanted criminal

2.   Doubt over beneficiary of the account

3.  Account of the person under investigation

4.  Account used for a cyber crime

Explanation:-

By having a current beneficiary on all your accounts, you leave no doubt as to what you wish to be done with your hard-earned money or
insurance proceeds.  If you die and have not named a beneficiary, this will delay the transfer of whatever funds are in those accounts.

Q18) Name the software available in the market for KYC implementation:

1.  Bank alert

2.  Bank call

3.   Bank master

4.  Tally

Explanation:-

Bank alert

Q19) Which of the following are examples of wilful blindness?

1.   Completing a transaction for a less, non-reportable amount after a customer has refused to produce ID for a larger transaction

2.  Cashing a cheque for someone who is not the payee of the cheque

Submit
3.  Allowing a customer to Test Get Govt. Certified
purchase money orders under different names
 4.  All of these

Explanation:-

All listed options are examples of willful blindness as end user details are concealed or missing

Q20) ____________ is a bank which is incorporated in a country where is no physical presence and is not affiliated to any regulated financial
group.

1.  Compendium Bank

2.  Correspondent Bank

3.   Shell Bank

4.  Respondent Bank

Explanation:-

A shell bank is a financial institution that does not have a physical presence in any country.

Shell Bank is a bank which is incorporated in a country where it has no physical presence and is not affiliated to any regulated financial
group. A shell bank is a term that describes a financial institution that does not have a physical presence in any country.

Q21) In the process of customer identification, the customer identification data should be updated __________ in 5 years in case of low risk
category, and __________ in case of medium and high risk category customers.

1.   Once; 2 years

2.  Twice; 2 years

3.  Once; 1 years

4.  Twice; 1 year

Explanation:-

the customer identification data should be updated once in 5 years in case of low risk category, and 2 years in case of medium and high risk
category customers.

Q22) What services are offered by correspondent banks

1.  International wire transfers

2.  Cheque clearing

3.  Cash/fund transfers

4.   All of these

Explanation:-

Correspondent banks is a financial institution that provides services on behalf of another, equal or unequal, financial institution is known as a
Correspondent Bank. A correspondent bank can conduct business transactions, accept deposits and gather documents on behalf of the
other financial institution. Correspondent banks are more likely to be used to conduct business in foreign countries, and act as a domestic
bank

Q23) What is not audited by Internal Audit and Control teams of the banks
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1.  adequacy of policies
 2.  adequacy of procedures

3.  system support to detect suspicious and potential money laundering transaction

4.   None of these

Explanation:-

Internal Audit and Control teams of the banks audit all listed options, which include adequacy of policies, adequacy of procedures and
system support to detect suspicious and potential money laundering transaction

Q24) Which of the following steps are involved in the Selection of Software and database vendors ?

1.  Check for the frequency of updates being provided by the vendor and integration of the software to apply updates.

2.  Compatibility of database formats with the software

3.  List and category of names covered by the vender

4.   All of these

Explanation:-

Selection of Software and database vendors may involve the following steps: Compatibility of database formats with the software;
Evaluation of logic used in name matching; Due diligence on the service provider; List and category of names covered by the vender; check
for suitability of workflow and models of name screening; Check for the frequency of updates being provided by the vendor and integration of
the software to apply updates.

Q25) which of the following acts does not constitute a money laundering offence?

1.   Dealing with any property, not knowing the property is proceeds of crime

2.  Dealing with any property , suspecting the property is proceeds of crime

3.  Dealing with any property believing the property is proceeds of crime

4.  None of these

Q26) Which part of the STR is the 'Soul' of the STR

1.   POS

2.  GOS

3.  TOS

4.  LOS

Explanation:-

Suspicious Transaction Report (STR) should be furnished within 7 days of arriving at a conclusion that any transaction, is of suspicious
nature. While furnishing the STR care needs to be exercised on drafting of the grounds of suspicion (GOS) in part 8 of the STR format. This
part of the STR is the 'Soul' of the STR as it answers the essential question of why the STR is being filed. Therefore the GOS have to be
accurate and complete.

Q27) How does KYC checks be communicated to customers of bank

1.  Publishing relevant information on the websites of the bank

2.  Incorporating the requirements in the account opening forms

Submit
3.  Providing a ready Teston frequently asked questions related
reckoner Get
to Govt.
KYC Certified
 4.   All of these

Explanation:-

KYC checks can be communicated to customers of bank by all listed options of incorporating the requirements in the account opening
forms, publishing relevant information on the websites of the bank and providing a ready reckoner on frequently asked questions related to
KYC.

Q28) which among the following software’s is used for risk assessment

1.   Risk assessment software

2.  Bank master

3.  Bank call

4.  Tally

Explanation:-

Internal audits are critical for proactively identifying deficiencies and for ensuring that financial institutions (“FIs”) maintain AML functions
and programs that are aligned with supervisory requirements and examiner expectations. The selection of these audits — as represented by
an audit plan — is the primary roadmap for AML testing activities and is often determined by a risk assessment. A notable challenge relating
to the compilation of an audit plan that effectively captures AML risk lies with the initial design of the risk assessment tool1, which should, at
a minimum, produce meaningful results that the audit department can interpret, analyze and use to build an appropriate risk‐based plan.

Q29) branches should not open deposit/ advances account of banned/ terrorist organizations as circulated as:

1.  IRDA

2.  AMPI

3.  SEBI

4.   FIU

Q30) Money Laundering refers to ____________.

1.  Conversation of assets into cash

2.  Conversion of assets into cash

3.   Conversion of money which is illegally obtained

4.  Conversion of cash in to gold

Explanation:-

Money laundering is the process of concealing the source of money obtained by illicit means such as gambling, corruption, extortion, drug
trafficking, human trafficking, etc., Money is moved around the financial system again and again in such manner that its origin gets hidden. It
is the process of making dirty money clean.

Q31) Which of the following documents are accepted as proofs of the customer identification?

1.  Electricity bill

2.  Income/ wealth tax assessment order

3.  Salary slip
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 4.   Election ID

Explanation:-

A Voter ID, also known as EPIC (Electors Photo Identity Card) is a photo identity card issued by the Election Commission of India to all Indian
citizens eligible to vote. The purpose of voter ID is to serve as an identity proof for voters, increase efficiency and prevent impersonation and
fraud during free and fair democratic elections.  This card is also commonly known as an election card, voter’s card, or Voter ID card.

The Indian voter ID card is an identity document issued by the Election Commission of India to adult domiciles of India who have reached the
age of 18, which primarily serves as an identity proof for Indian citizens while casting their ballot in the country's municipal, state, and
national elections. I

Q32) KYC guidelines followed by the bank have been framed on the recommendations of the _______

1.  Ministry of home affairs

2.  Ministry of information technology and human resource development

3.  Indian bank association

4.   Reserve bank of india

Q33) Accounts are risk categorized under KYC is:

1.   Low, medium and high risk

2.  Low, very low and high risk

3.  Medium, moderate and very high risk

4.  None of these

Q34) employee training programs should

1.  Include all existing and new employees

2.   All of these

3.  Be ongoing and updated to include new changes in the law and industry

4.  Be specific to the employees duties and the services provided by the MSB

Explanation:-

In practice, an AML compliance program should ensure that an institution is able to detect suspicious activities associated with money
laundering, including tax evasion, fraud, and terrorist financing, and report them to the appropriate authorities. An AML compliance program
should focus not only on the effectiveness of internal systems and controls developed to detect money laundering, but on the risk posed by
the activities of customers and clients with which an institution does business.

An AML program should be built on a strong foundation of regulatory understanding and overseen by personnel who are experienced and
knowledgeable enough to create a climate of compliance at every level of their organization.

employee training programs on AL-KYC should include all of the following

- Include all existing and new employees

- Be ongoing and updated to include new changes in the law and industry

- Be specific to the employees duties and the services provided by the MSB

Q35) Money laundering measures were originally introduced by:

1.  EXIM bank Submit Test Get Govt. Certified

 2.  DICGC

3.  SEBI

4.   FDIC

Explanation:-

The Prevention of Money Laundering Act, 2002 (PMLA) was brought into force with effect from 1st July 2005. Necessary Notifications /
Rules under the said Act were published in the Gazette of India on July 01, 2005. Subsequently, SEBI issued necessary guidelines vide
circular no. ISD/CIR/RR/AML/1/06 dated January 18, 2006 to all securities market intermediaries as registered under Section 12 of the SEBI
Act, 1992. These guidelines were issued in the context of the recommendations made by the Financial Action Task Force (FATF) on anti-
money laundering standards. Compliance with these standards by all intermediaries and the country has become imperative for international
financial relations.

Q36) In accordance with AML-KYC, what is the full form of SP ?

1.  Service Provider

2.   System Participants

3.  Security Policy

4.  None of these

Explanation:-

SP refers to System Participants.

Q37) The bank secrecy act requires financial institutions to:

1.  File currency transactions reports with the IRS

2.  Keep record of all transactions

3.  Report suspicious activities

4.   Keep record of all transactions and report suspicious activities

Explanation:-

The Bank Secrecy Act of 1970 (or BSA, or otherwise known as the Currency and Foreign Transactions Reporting Act) requires financial
institutions in the United States to assist U.S. government agencies to detect and prevent money laundering. Specifically, the act requires
financial institutions to keep records of cash purchases of negotiable instruments, and file reports of cash purchases of these negotiable
instruments of more than $10,000 (daily aggregate amount), and to report suspicious activity that might signify money laundering, tax
evasion, or other criminal activities.

Q38) In accordance with AML-KYC, what is the full form of SCB ?

1.   Scheduled Commercial Bank

2.  Standard Chartered Bank

3.  Special Compensation Board

4.  None of these

Explanation:-
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 SCB refers to Scheduled Commercial Bank.

The scheduled commercial banks are those banks which are included in the second schedule of RBI Act 1934 and which carry out the
normal business of banking such as accepting deposits, giving out loans and other banking services. The major difference between
Scheduled Commercial Banks and Scheduled Cooperative Banks is their holding pattern, since cooperatives are registered under the
Cooperative Societies Act as cooperative credit institutions.

Q39) simplified due diligence can be applied to small deposits accounts where the balances/credits of all accounts should not exceed:

1.  150000 and 30000

2.   50000 and 100000

3.  50000 and 150000

4.  None of these

Q40) The amount beyond which cash transactions are to be monitored by the commercial bank as stipulated by the RBI in its guidelines is

1.  None of these

2.   10 lacs and above

3.  8 lacs and above

4.  5 lacs and above

Explanation:-

As per RBI -
Banks are required to issue travellers cheques, demand drafts, mail transfers, and telegraphic transfers for Rs.50,000 and above only by debit
to customers’ accounts or against cheques and not against cash (Circular DBOD.BP.BC.114/C.469 (81)-91 dated April 19, 1991) Further, the
applicants (whether customers or not) for the above transactions for amount exceeding Rs.10,000 should affix permanent (Income tax)
account number on the applications (Circular DBOD.BP.BC.92/C469-76 dated August 12, 1976). Since KYC is now expected to establish the
identity of the customer and as the issue of demand draft etc. for Rs.50,000 and above is by debit to account, the requirement for furnishing
PAN stands increased uniformly to Rs.50,000/-.

Q41) ____ refers to the separation of illicit proceeds from their source by creating complex layers of financial transactions.

1.  Integration

2.   Layering

3.  Placement

4.  Smurfing

Explanation:-

There are three independent steps or stages in Money Laundering as shown below:

Placement: It refers to the physical disposal of bulk cash proceeds derived from illegal activity.

Layering: This term refers to the separation of illicit proceeds from their source by creating complex layers of financial transactions. Layering
conceals the audit trail and provides anonymity.

Integration: It refers to the re-injection of the laundered proceeds back into the economy in such a way that they re-enter the financial system
as normal business funds.

----------------------------------

Smurfing: A smurf is a colloquial term for a money launderer, or one who seeks to evade scrutiny from government agencies by breaking up a
transaction involving Submit Test of money into smaller transactions
a large amount Getbelow
Govt.the
Certified
reporting threshold.
Q42) Role of the front line employees of the bank in respect of KYC guidelines is to:

1.  Assist the customer in filing up the account opening forms.

2.  Serve with smile while opening the customer accounts.

3.   Identify customers as per the existing instructions.

4.  Provide efficient customer service.

Explanation:-

Frontline staff can serve as the first line of defence against such illicit transactions being passed through their organisation

As regulatory pressures continue to mount, financial institutions are looking to their frontline staff to act effectively as their first line of
defense when it comes to ensuring that the bank is acting in a compliant way with customers and discovering potential problems or bad
actors in their own day-to-day operations.  That was one of the conclusions reached by an executive roundtable of compliance officers held
at BAI Retail Delivery 2015 last October.

Viewpoints at the roundtable came from senior-level bankers with backgrounds in compliance, training, risk and general management. The
diversity of experience represented at the meeting is indicative of recent trends in bank compliance. Compliance is no longer contained
within a centralized department – it has become the concern of executives with diverse roles within banks.

Moving from centralized knowledge to dispersed knowledge is challenging. Many more people require training. Opportunity cost becomes a
concern. Across a bank, the cumulative number of hours of training can become significant. Those dedicating the time to training are also
responsible for delivering revenue and service for the bank in a very challenging environment. As a result, efficient, role-relevant training is in
high demand as bankers realize that increasing institutional compliance knowledge can lead to better service and more revenue.

Q43) An example of ‘smurfing’ is:

1.  Wiring money to the foreign country

2.   A drug dealer asking a stranger to buy a money order with drug money

3.  A broker buying pesos with US Dollar

4.  None of these

Explanation:-

Structuring, also known as smurfing in banking jargon, is the practice of executing financial transactions such as making bank deposits in a
specific pattern, calculated to avoid triggering financial institutions to file reports required by law, such as the United States' Bank Secrecy Act
(BSA) and Internal Revenue ...

Q44) Which of the following terms is used to describe the process of sending money through multiple financial institutions to make it difficult to
track?

1.   Layering

2.  Integration

3.  Camouflage

4.  Placement

Explanation:-

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 Layering, in which the money is involved in a series of transactions to re-mold its origin and effectively put it away from its true source. This
may involve wire transfers, deposits or withdrawals, exchanges into different currencies or the purchase of high-value goods such as cars,
home or jewelry.

Layering is the second stage in money laundering where attempts are made to distance the money from its illegal source through layers of
financial transactions.

Examples of Layering include:

        Sending funds to different onshore and offshore bank accounts

        Creating complex financial transactions
        Loans and borrowing against financial and non-financial assets
        Letters of credit, Bank Guarantees, Financial instruments, etc.
        Investments and investment schemes
        Insurance products

Q45) which of the following statement is wrong:

1.  bank should maintain record of all cash transactions of the value of more than 10 lakh

2.   bank should maintain record of all suspicious transactions when made in cash only

3.  maintain record all transactions related to NPO of value more than 10 lakhs

4.  none of these

Q46) EDD needs to be undertaken for all

1.  Low-risk customers

2.   High-risk customers

3.  Medium-risk customers

4.  All of these

Q47) what is the time frame stipulated by RBI for updation of KYC data in respect of high risk customers?

1.  5 years

2.   2 years

3.  3 years

4.  FALSE

Q48) if the customer avail the service of remittance, what kind of relationship may be formed between the customer and banker:

1.  Agent/ customer

2.  Creditor/ debtor

3.   Fiduciary agent/ principal

4.  Pledge/ pledger

Explanation:-

It's a business relationship where a principal gives legal authority to an agent to act on the principal's behalf when dealing with a third party.
Agency relationships are fiduciary relationships, meaning the agent owes a fiduciary duty to the principal.

Q49) Please read the KYC practice given below. Identify the KYC element which best relates to the stated practice. Effective information-
Submit
gathering strategies enable Test of a solid information base about each
building Get Govt. Certified
customer. This is known as ______________.
 1.   accounts and transaction monitoring

2.  customer identification

3.  customer acceptance

4.  risk management

Q50) Which of the following acts defines the offence of Money Laundering as under - "Engaging directly or indirectly in a transaction that
involves property, that is proceeds of crime (or) derived from proceeds of crime (or) knowingly receiving, possessing, concealing, disguising,
transpiring, converting, disposing off within the territories of India, removing form or bringing into the territory of India the property that is
proceeds of crime"

1.   Impediment of Money Laundering Act (PMLA), 2002

2.  Anti-Money Laundering Act, 2005

3.  Active Money Laundering Act (AMLA), 2003

4.  Prevention of Money Laundering Act (PMLA), 2002

Explanation:-

The Prevention of Money Laundering Act (PMLA) 2002 defines the offence of Money Laundering as Engaging directly or indirectly in a
transaction that involves property, that is proceeds of crime (or) derived from proceeds of crime (or) knowingly receiving, possessing,
concealing, disguising, transpiring, converting, disposing off within the territories of India, removing from or bringing into the territory of India
the property that is proceeds of crime

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