KYC and AML Guidelines Quiz

What is KYC?

• Know Your Client

• Know Your Company

• Know Your Customer

• None of the above.

How many categories of risk are there under KYC?

• 1

• 2

• 3

• 4

• 5

Why KYC / AML guidelines required?

• To Prevent banks from being used intentionally or unintentionally by criminal elements for money laundering

• To prevent banks from being used intentionally or unintentionally by criminal elements for terrorist financing activities

• It enables banks to understand that customers and their financial dealings better

• All of the above

• None of the above

Which are the entities licensed under Section 22 of Banking Regulation Act to which provisions of KYC policy of RBI will be applicable?

• Scheduled Commercial bank(SCB), Regional Rural Banks (RRBs), Local area Bank(LABs)

• Primary (Urban) Co-operative banks (UCBs) and State & Central Co-operative banks (SICBs/ CCBs)

• All of the above

• None of the above

Which among the following is not a category of risk under KYC?

• Low Risk

• Medium Risk

• High Risk

• Normal Risk

• very high risk

KYC policy of the banks as per RBI directives should provide for (1) Customer acceptance policy (2) customer identification procedure monitoring of transactions (4) risk management

• 1, 2 and 3 only

• 1, 3 and 4 only

• 2, 3 and 4 only

• 1 to 4 all

Customer acceptance policy of the bank is framed so as to take care of which are all aspects?

• No account is opened without applying appropriate customer due diligence.

• No Accounts to be opened in the name in anonymous/ fictitious/benami names

• No transaction or account based relationship is undertaken without following the Customer Due Diligence procedure

• All specified mandatory information to be compulsorily to be obtained while opening the account and during the periodic updations and optional/additional information after opening the account with the consent of customer

• All of the above

Which among the following is not an Officially Valid Document?

• Pass Port

• Electricity Bill

• Driving License

• Voters ID Card.

• Aadhar Card

Officially Valid Document for Limited purpose of proof of address are:

• Utility Bill not more than 2 months old

• Property or Municipal tax receipt

• Pension / Family pension payment order issued to retired employees if it contains address

• All the above

• None of the above

In case the address furnished in the proof of address undergoes a change, what does the KYC policy stipulate?

• Customer to submit any Official valid documents for limited purpose of proof of address.

• Customer shall submit any other officially valid documents for current address within 3 months.

• Ration card with latest address

• a & b both

• None of the above