KYC Final

which of the following is not an objective of KYC?

• Prevent banks being used, intentionally or unintentionally by criminal elements for money laundering.
• To be aware of the identity of the customer
• To be aware of the location of the customer
• To manage the risks associated with the customer in a prudent manner
• To sell third party products to the customer

In which year was the Prevention of Money Laundering Act (PMLA) enacted in India?

• 1999
• 2000
• 2001
• 2002
• 2003

Which section of the Prevention of Money Laundering Act (PMLA), 2002, defines the offence of money laundering?

• Section 1
• Section 2
• Section 3
• Section 4
• Section 5

Under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002, which of the following activities constitutes the offence of money laundering?

• Directly or indirectly attempting to indulge in the proceeds of crime.
• Knowingly assisting in the activity related to the proceeds of crime.
• Being a party to the process connected with the proceeds of crime.
• Projecting proceeds of crime as untainted property
• All of the above

Which of the following stages is NOT part of the typical process of money laundering?

• Placement
• Layering
• Integration
• Collection
• None

Which of the following is NOT included in the definition of a 'person' under the Prevention of Money Laundering Act (PMLA)?

• An individual
• A company
• A government agency
• A Hindu undivided family
• A firm

What percentage of shares or capital defines a controlling ownership interest in a company for identifying a beneficial owner?

• 0.05
• 0.1
• 0.15
• 0.2
• 0.25

In a partnership firm, what percentage of capital or profits must a person be entitled to in order to be considered a beneficial owner?

• 0.05
• 0.1
• 0.15
• 0.2
• 0.25

In an unincorporated association or body of individuals, what percentage of property, capital, or profits defines a beneficial owner?

• 0.05
• 0.1
• 0.15
• 0.2
• 0.25

Which of the following roles is NOT typically classified as a Politically Exposed Person (PEP)?

• Senior politicians
• Senior government officers
• Senior executives of state-owned corporations
• Important political party officials
• Local MLAs

Answer explanation

For the purpose of this section “Politically Exposed Persons” (PEPs) are individuals who are or have been entrusted with prominent public functions by a foreign country, including the Heads of States/Governments, senior politicians, senior government or juridical or military officers, senior executives of state-owned corporations and important political party officials.