In terms of Section 77 of the Banking Act No 30 of 1988, bankers are required to observe strict secrecy in respect of all customer affairs.  The section also provides for certain exceptions to this requirement. In which of the following instance a banker shall not reveal information pertaining to customers to a third party.

Department of Bank Supervision has issued a regulation stipulating the threshold age to consider a customer as a senior citizen for the purpose of uniformity in banking operations. What is that age?

As stipulated in the prevailing CBSL instructions on “Sub-categorization of Non Performing Credit Facilities”, any credit facility where contractual payment is past due or have remained in excess of the sanctioned limit for more than 270 days but less than or equal to 360 days, the facility will be categorized as;

01.   A customer has requested a credit facility to purchase a motor vehicle, which has been used in Sri Lanka for five years. The facility granted for this purpose should not exceed ……….. of the Market value of such vehicle.

Banks are expected to serve all customers equally and not to provide any preferential treatments to those who are related to the bank in various ways. Many regulations have been issued to ensure this aspect. Who is not considered as a Related Party of the bank under the corporate governance regulations issued by the CBSL

Bank is in the process of granting a credit facility to a spouse of a Director of the bank. Which of the following could be accepted as security for such facility

Officers performing executive functions in the bank are considered as key management persons (KMPs) of the bank. Which of the following function holder is  not considered as a  KMP of the bank?

With a view to meeting the challenges faced by businesses and individuals due to prevailing extraordinary macroeconomic circumstances, the Central Bank of Sri Lanka has instructed banks to suspend new recovery actions till ……………….

Bank has granted a credit facility against the business property of Mr. A which is non performing at present. The property in concern was last valued in 2020. When should the same be revalued.

Basel Accord is a set of banking regulatory standards established by the Basel Committee. Which one of the following Basel Accords is being adopted currently?

The Financial Action Task force (FATF) in its “Blacklist” identifies countries that are considered as non-cooperative and deficient in the global effort to combat money laundering and terrorist financing. Two countries are currently appearing in this list. What are they?

Asia Pacific Group (APG) on money laundering is among the largest Financial Action Task Force (FATF)-style regional bodies in terms of membership numbers and geographical size.   Based on a decision taken by FATF that the actions of a certain country “run counter to the FATF core principles aiming to promote security, safety and the integrity of the global financial system”, The APG recently revoked the ‘observer’ status of a country. Which country is it?

Cryptocurrency is a term referred to any form of currency that exists digitally or virtually and uses cryptography to secure transactions and there are many parties who drive this informal decentralized system. One of the largest Crypto Lenders ended up falling for bankruptcy in July this year. What is this company?

Cryptocurrency scams are found to be on the rise. Scammers have stolen more than $1 billion since 2021, according to a recent report by the Federal Trade Commission - USA.

The Securities and Exchange Commission of USA, filed a civil complaint in August this year, charging 11 people for their roles in creating and promoting an allegedly fraudulent crypto-focused pyramid scheme that raised more than $300 million from investors. What was the name of this scheme?

Transparency International is a German registered association founded in 1993 by former employees of the World Bank. Through its Global Corruption Barometer, Transparency International, asks tens of thousands of people around the globe about their views and experiences, making it a worldwide public opinion survey on corruption followed by publication of  ‘Corruption Perceptions Index’. Which country is ranked the least corrupt in 2021 in the Corruption Perception Index?

It was among the recent local news highlights that more than 1000 Sri Lankans in one district alone lost around Rs. 8 billion in investments made in a fraudulent Crypto currency platform  created by a Chinese national and a Srilankan. Name of this platform was

Bernard L Madoff, having been convicted for running multibillion Dollar Ponzi Scheme which was one of the biggest financial crimes added to the history, died in prison last year.  What is the name of the bank which was prosecuted with criminal charges in connection with the Madoff investment scandal.

Financial Intelligence Unit of the Central Bank recently imposed a penalty on Sampath Bank for LKR 1,000,000/- in June 2022. The reason for this penalty was,

A sum of $700,000,000  being  the largest penalty imposed on a Bank during the year 2021 due to Insufficient AML/CFT controls was imposed on;

The Financial Transactions Reporting Act, No. 6 of 2006 empowers the Financial Intelligence Unit [FIU] to freeze an account or suspense transactions of an account. What the maximum period the FIU can execute such powers?

Staff of the bank are expected to follow the guidelines issued under PEP GCL 2020/25 prepared in line with the respective regulatory requirements, when dealing with Politically Exposed Persons. Select the person who cannot be considered as a PEP under this GCL

Select the  correct statement/s related to FATCA,

(I)FATCA is a US legislation aimed at preventing tax evasion by US persons through their overseas assets.

(II) FATCA forms to be obtained only if the customer’s   initial deposit or account balance exceeds  USD 50,000.

(III) FATCA regulations are applicable to  an individual born in the UK, but resident in another country who has not renounced UK citizenship.

   Branch staff must conduct name screening;

As per the …………………………………………, a Police Officer not below the rank of Assistant Superintendent of Police also has the power to issue a “Freezing Order” prohibiting any transaction in relation to account, property or investment. Fill in the blank.

As per the local regulatory requirements all Banks in Sri Lanka are obliged to comply with the Resolutions issued on financial restrictions/ financial sanctions issued by the ;

a)       Office of Foreign Assets and Control – OFAC

b)      United Nations Security Council - UNSC

c)       European Union – EU

Non-Profit Organizations [NPOs] are required to be registered at National Secretaries for Non- Governmental Organizations, if such NPOs;

                                 I.            are funded by  foreign inward remittances

                               II.            Place  Term Deposits for more than LKR 1 Mn  

                             III.            are operating in more than one administrative district

                            IV.            Maintain a monthly credit turnover exceeding LKR 1Mn in their bank account.

Following debit transactions are permitted in a suspended accounts

What is the initial action you must take upon identifying an unusual transaction or pattern of transactions in an account?

Employees reporting suspicious transactions in good faith are protected under the provisions of the

Persons are categorized as ‘residents’/’Non-residents’ for the purpose of the Foreign Exchange Act. Accordingly, who are considered as non-resident/s.

[A] Non-nations residents in Sri Lanka

[B] Diplomatic representatives of the Government residing outside Sri Lanka

[C] Foreign Diplomatic representatives residing in Sri Lanka

[D] Sri Lankan students studying in foreign universities

Select the online regulatory portal which has been recently introduced for the exclusive reporting of the export business transactions conducted by banks on behalf of their customers

Mr. Fernando maintains a current account with the balance of LKR 0.5 Mn. He plans to do the following two transactions using his debit card.

A Pay LKR. 200,000 to import a computer tab to his son

B  Pay LKR 200,000 to import Dry fish for selling.

What will you do as his banker?

What is the type of visa a foreign national should have to open a LKR savings account in Sri Lanka?

Mr. Alex who is a non-national residing in UK is entitled to receive LKR 10 million being the sales proceeds of the land belonged to his grandfather – late Mr. Silva as per his last will. How can Mr. Alex repatriate the funds to his country?

A foreign investor met you and explained his business proposal. His plan is to carry on the following business activities and to maintain the respective accounts at your branch.  Which of them are allowed in Sri Lanka?

A.      Money lending

B.      Pawn broking

C.      Deep sea fishing

1.       XYZ Company which is not registered in CSE [Colombo Stock Exchange] is engaged in importing mobile phones from China. The China supplier has agreed to grant a USD loan payable in 4 years to XYZ company. As per the prevailing regulations, is it possible for XYZ company to obtain a USD loan?

MTD Company is engaged in road construction works in Sri Lanka and needs to import required materials amounting to USD 1,500,000. For this transaction, the seller asks for a bank guarantee for the full amount of the import bill. What is your opinion?

Which of the following transactions cannot be accommodated as per the prevailing restrictions imposed under section 22 of Foreign Exchange Act?

Select the incorrect statement.