WorksheetsIIBF KYC AML Quiz 3
Total questions: 50
Worksheet time: 50mins
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
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 Cooperative banks (SICBs/ CCBs)
All of the above
Which among the following is not a category of risk under KYC?
Low Risk
Medium Risk
High Risk
Normal Risk
KYC policy of the banks as per RBI directives should provide for
(1) Customer acceptance policy (2) customer identification procedure
(3) 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 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 up-dations and optional/additional information after opening the account with the consent of customer
Which among the following is not an Officially Valid Document?
Pass Port
Electricity Bill
Driving License
Voters ID 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
In case the address furnished in the proof of address undergoes a change, what does the KYC policy stipulates?
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 with in3 months.
Both of the above
None of the above
To receive any benefit or subsidy notified under Section 7 of Aadhaar Act which of the following is correct.
Submission & Seeding of Aadhar Number to Account is Mandatory
Any of the Official Valid Document can be submitted
Submission of PAN is Mandatory.
No Official Valid Document need to submit.
What are the documents to be submitted by an individual for establishing an account based relationship with the bank as per the guidelines?
Proof of possession of Aadhaar Number, PAN Card / Form60
Passport, Driving License, Voters ID issued by Election Commission
Photograph
Any of a or b and c
Which are the simplified documents acceptable in the case of Low Risk customers for Customer identity?
Identity card with applicant’s Photograph issued by Central/ State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions or
a letter issued by a Gazetted officer, with a duly attested photograph of the person
a & b
Any of the above
Which among the following cannot be accepted both as Identity and Address Proof?
PAN Card
Pass Port
Driving License
Voter’s ID Card.
Who is authorized to act as and perform the functions of CKYCR?
Central Registry of Securitization Asset Reconstruction and Securities of India(CERSAI)
Department of CKYCR, Finance Ministry
UIDAI
RBI
What are the functions of CKYCR?
Receiving, Storing, Safe guarding and retrieving KYC records in digital form
Verifying the KYC compliance by the bank
Issuing Aadhar
None of the above
As per PML (Maintenance of Records) Rules 2005, bank shall file copy of the client’s KYC records with the CKYCR within ……… days after commencement of an account based relationship with a client.
T +5 days
T+ 9 days
T+15 days
None of the above
Documents to be scanned and uploaded for CKYCR
ID proof & Address
Proof of Identity, Proof of Address, Cropped up Signature and Photograph
Signature and Photograph
Application
What is the ceiling for acceptance of cash for the purchase of DD?
Rs.50000
Less than Rs.50000
Rs.20000
Rs.10000
Before opening the account branches have to verify the prospective account holder’s details in CKYC package under the option……………………………
Customer Unique Identification Code
CKYC Management
Aadhaar Verification
Account opening
Which of the following is correct for CKYC data uploading?
Any one of father’s name/ spouse’s name or mother’s name only is mandatory
Father’s name is mandatory if PAN is not submitted
Maiden name field is optional
All the above is correct
A lady who is belonging to Mumbai shifted to Delhi on marriage approaches the bank for opening an account. Bank finds that a customer’s name differs from the OVD submitted for opening. Which of the document bank can accept to open the account?
A copy of marriage certificate issued by the State Government
Gazette notification indicating the change in name
Copy of OVD stipulated
a & c or b & c
For Low Risk customers, KYC up-dation is to be done once in years?
3
5
8
10
For Medium Risk customers KYC up-dation is to be done once in_____years?
3
5
8
10
For High Risk customers KYC up-dation is to be done once in____years?
3
5
8
2
What is the maximum validity period for operations permissible in small account?
24 months which can be extended for a period of 6months
12 months which can be extended by another 12 months provided the account holder applies and furnishes evidence of having applied for any OVD
Maximum 12 months within which period the customer has to submit the OVDs
None of the above
What is UIDAI?
Union Industries Development Authority of India
United Industries Development Authority of India
Unique Identification Authority of India
United India Draught & Accident Insurance
For opening of Partnership firms, which are the following documents can be obtained?
Registration certificate if Registered
Partnership Deed
PAN number of the firm
All the above
To open Trust account, which of the following documents to be obtained?
License from RBI
Registration certificate (if registered) &Trust Deed
PAN of the Trust
b & c
In respect of Trust account, which of the following documents are stipulated for Customer Due Diligence of the person holding an attorney to transaction its behalf?
One copy of OVD containing of Identity & Address of Authorized person
One Recent photograph of Authorized person
Form 60 or PAN number of the authorized person
All of the above
Documents to be obtained from any juridical persons such as Government or its departments, Societies, Universities etc. as per KYC policy?
Document showing name of the person authorized to act on behalf of the entity
OVD and PAN or Form 60 of the authorized person
Documents required to establish the legal existence of such entity
All of the above
When is customer’s day is observed ?
2nd October every year
15th of Every Month
2nd Wednesday of every month
Last Friday of every month
“Controlling ownership interest” means ownership of/entitlement to more than ______ of the shares or capital or profits of the company.
10 percent
20 percent
30 percent
25 percent
Prevention of Money-Laundering Act?
2002
2003
2004
2005
Prevention of Money-Laundering (Maintenance of Records) rules
2002
2003
2005
2004
When the customer is a partnership firm, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has/have ownership of/entitlement to more than ___ of capital or profits of the partnership
15 percent
25 percent
10 percent
35 percent
Where the customer is an unincorporated association or body of individuals, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has/have ownership of/entitlement to more than ____ of the property or capital or profits of the unincorporated association or body of individuals
15 percent
25 percent
10 percent
35 percent
Where the customer is a trust, the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with ___ or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership.
10 percent
15 percent
20 percent
35 percent
_______means an entity defined under Rule 2(1) of the Rules, to receive, store, safeguard and retrieve the KYC records in digital form of a customer.
Central KYC Records Registry” (CKYCR)
“Central KYC Remittance Registry” (CKYCR)
“Central KYC Retention Registry” (CKYCR)
Any of the above
_____means the capturing live photo of the customer and officially valid document or the proof of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and longitude of the location where such live photo is being taken by an authorised officer of the RE as per the provisions contained in the Act
Digital KYC
Face to Face KYC
Both
None of the above
______means an electronic equivalent of a document, issued by the issuing authority of such document with its valid digital signature including documents issued to the digital locker account of the customer as per rule 9 of the Information Technology (Preservation and Retention of Information by Intermediaries Providing Digital Locker Facilities) Rules, 2016
Equivalent e-document
Equivalent R-document”
Equivalent P-document”
Equivalent W-document”
______means the unique number or code assigned to a customer by the Central KYC Records Registry
Know Your Client (KYC) Identifier
Know Your Customer (KYC) Identifier
Both
None of the above
______means any entity or organisation, constituted for religious or charitable purposes referred to in clause (15) of section 2 of the Income-tax Act, 1961 (43 of 1961), that is registered as a trust or a society under the Societies Registration Act, 1860 or any similar State legislation or a company registered under Section 8 of the Companies Act, 2013 (18 of 2013)
IMF
World Bank
Non-profit organisations
None of the above
(a) means the passport, the driving licence, proof of possession of Aadhaar number, the Voter's Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government and letter issued by the National Population Register containing details of name and address.
OVD furnished by the customer does not have updated address, the following documents or the equivalent e-documents thereof shall be deemed to be OVDs for the limited purpose of proof of address which of the following documents or the equivalent e-documents shall be acceptable
utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
property or Municipal tax receipt;
pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation;
All the above
_____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 judicial or military officers, senior executives of state-owned corporations and important political party officials.
Politically Exposed Persons” (PEPs)
High Networth Individuals
Senior Citizen
All the above
Principal Officer” means an officer nominated by the RE, responsible for furnishing information as per rule __of the Rules
Rule 8
Rule 9
Rule 10
Rule 5
Transaction involving financing of the activities relating to terrorism includes transaction involving funds suspected to be linked or related to, or to be used for terrorism, terrorist acts or by a terrorist, terrorist organization or those who finance or are attempting to finance terrorism.
Normal Transactions
Suspicious Transaction
either a or b
None of the above
___means a savings account which is opened in terms of sub-rule (5) of the PML Rules, 2005. Details of the operation of a small account and controls to be exercised for such account are specified in Section 23.
Small Account
Corporate account
HNI Account
Any of the above
____means reporting standards set for implementation of multilateral agreement signed to automatically exchange information based on Article 6 of the Convention on Mutual Administrative Assistance in Tax Matters.
Common Reporting Standards
Common Resource Standards
Common Reporting Sources
None of the above
_____is the provision of banking services by one bank (the “correspondent bank”) to another bank (the “respondent bank”). Respondent banks may be provided with a wide range of services, including cash management (e.g., interest-bearing accounts in a variety of currencies), international wire transfers, cheque clearing, payable-through accounts and foreign exchange services.
Correspondent Banking
Investment Banking
Wealth Management
None of the above
____means Agreement between the Governments of India and the USA to improve international tax compliance and to implement FATCA of the USA.
Inter Governmental Agreement
Inter Geographical Agreement
Inter Governmental Assistance
None of the above
