Wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

KYC/PMLA

Total questions: 25

Worksheet time: 25mins

Name
Class
Date
1.

In KYC area OVD stands for:

a)

Oracle Virtual Directory

b)

Officially valid documents

c)

Optical Variable Device

d)

Obsessive Vampire Disorder

e)

Other Vowel Digraphs

2.

What is the second stage of ML process?

a)

Layering

b)

Placement

c)

Integration

d)

Collection

3.

FATF stands for:

a)

Financial Action Task Force

b)

Foreign Action Tax Force

c)

Fraud Activity Test Facility

d)

Foreign Automated Tax Facility

4.

Financial institutions which do not have a physical presence. A relationship with these entities is prohibited unless they are bank affiliates with a physical presence.

a)

Shell Corporation

b)

Unregulated casinos

c)

Unclicensed banks

5.

Who among the following are low risk customers as per FATF

a)

Multi Level Marketing Companies

b)

Firms with Sleeping partner

c)

Companies having close family shareholding

d)

NGOs and NPOs owned and run by United Nations

6.

As per PML rules 2005, All neccessary records of transactions between Bank and customer has to be maintained for a minimum of --- years from the date of transaction

a)

Five Years

b)

Eight Years

c)

Ten years

d)

Twelve years

7.

Customer Acceptance policy is framed by?

a)

RBI

b)

Government

c)

Bank

d)

FIU-IND

8.

In India, who issues AML guidelines?

a)

FIU-IND

b)

RBI

c)

FATCA

d)

PMLA

9.

CRS Stands for

a)

Common Reporting System

b)

Common Reporting Standards

c)

Currency Reporting Software

d)

Counterfeit currency Reporting Software

10.

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

a)

Placement

b)

Layering

c)

Integration

d)

Segregation

11.

As per inoperative account definition Which of the following is a customer induced transaction in an account

a)

Crediting FD interest

b)

ATM Charges

c)

SB account interest

d)

None of the above

12.

What are the stages of money laundering which are resorted to by the launderers & insurance institutions

a)

Integration-Layering-Placement

b)

Layering-Placement-Integration

c)

Placement-Layering-Integration

d)

None of the above

13.

FIU-IND stands for

a)

Financial Influence Unit - IND

b)

Financial Intellectual Unit - IND

c)

Financial Interpret Unit - IND

d)

Financial Intelligence Unit - IND

14.

Money laundering is a:

a)

Hate crime

b)

Financial crime

c)

Identity Theft crime

15.

Which of the following acts does not constitute a money laundering offence?

a)

Dealing with any property believing the property is proceeds of crime

b)

Dealing with any property, not knowing the property is proceeds of crime

c)

Dealing with any property, suspecting the property is proceeds of crime

d)

None of these

16.

KYC compliance is a mandatory exercise under the prevention of ?

a)

Money Laundering Act, 2001

b)

Money Laundering Act, 2002

c)

Money Laundering Act, 2003

d)

Money Laundering Act, 2004

17.

What is money laundering?

a)

Concealment of illegal assets with prior knowledge

b)

Converting dirty money into clean money

c)

Acquisition , use and possession of illegal assets with knowledge

d)

Arrangements-assisting the act of money laundering

18.

Choose three which are unusual and may need to be reported as suspicious transactions

a)

A customer who deposits money of suspicious origins and refuses to answer questions from the financial institution’s staff

b)

A customer who tries to move money that is suspected of being derived from criminal activity

c)

A customer who owns a large supermarket and deposits large amounts of cash several times a day.

d)

A customer whose account is showing transaction activities which are beyond his known financial capability

19.

The risk-based approach to money laundering includes?

a)

Organization risk assessment

b)

Customer risk assessment

c)

Both

d)

Neither

20.

Which of the following is not an example of a suspicious transaction?

a)

Unusual instructions from a client

b)

Invoice payment discrepancies

c)

Large dividend payments

d)

Suspected price fixing

21.

Which of the following answers is the best definition of a suspicious transaction?

a)

A transaction that is unusually complex

b)

A transaction that is inconsistently large

c)

A transaction that is unusually large

d)

A transaction that is inconsistent with the client's known legitimate business, personal activities, or type of client

22.

Which of the following may be an indicator of money laundering?

a)

Paying by credit card

b)

Expensive policies being taken out and then cancelled

c)

Insurance being taken out on property

d)

Money being withdrawn from different cash machines

23.

For the money laundering process to be a success,transactions such as currency exchange,wire transfers,and money orders need to be complimented with any paper trail

a)

TRUE

b)

FALSE

24.

To which organisation a suspicious transaction report should be made?

a)

Narcotics Division, Security Bureau

b)

Hong Kong Monetary Authority

c)

Joint Financial Intelligence Unit

25.

 

Identify below the money laundering process which splits illegal monies upon receipt from the criminal, disguises the audit trail and breaking connections with the criminal offence; giving the impression of a legitimate financial transaction ?

a)

Integration

b)

Layering

c)

Washing

d)

Depositing

e)

Placement