1.

Money Laundering means:}~Conversion of assets to invest in Laundromats=Conversion of money which is illegally obtained to make
them legitimate~Conversion of cash into gold to make them legitimate~Conversion of assets into cash to make them legitimate

2. The implementation of KYC in banks primarily addresses which one of the following risks:}~Reputation risk~Legal risk=Money laundering
risk~Compliance risk

3. When banks sell third party products (such as insurance, mutual funds etc) as agents, the responsibility for ensuring compliance with
KYC/AML/CFT regulations:}~lies with the bank marketing the product=lies with the third party issuer~lies with both the bank as well as the third
party issuer~depends on whether the customer pays the money in cash or otherwise

4. Under the KYC guidelines, banks need to conduct EDD - Enhanced due diligence in all the following cases except in case of
:}~Correspondent accounts~Non-face-to-face customers~Firms with sleeping partners=Personal customers with small deposits

5. As per FIU guidelines, a bank has to mandatorily maintain records in case of suspicious transactions for a period of years from the
date of cessation of the transactions between the client and the banking:}~Three~Five~Seven=Ten

6. As per FIU guidelines the records of all information on identity of clients are required to be maintained by every reporting entity for a
period of .. year (s) from the date of cessation of the relationship with their clients:}~One~Two~Three=Five

7. One of the following is not required to be reported to FIU:}=Accounts opened report (AOR)~Cash transaction report (CTR)~Counterfeit
currency report (CCR)~Suspicious transaction report (STR)

8. The Government of India has notified six documents as Officially Valid Documents (OVDs) for the purpose of producing proof of identity.
Choose the correct option from the following:}~Aadhaar Card, Passport, PAN Card, Employee ID, Voter Identity Card, Ration Card~PAN Card,
Aadhaar Card, Driving Licence, Voter Identity Card, Ration Card, Passport~Voter Identity Card, Passport, PAN Card, Aadhaar Card, Employee Id,
NREGA Job Card=Passport, PAN Card, Aadhaar Card, Driving Licence, Voter Identity Card, NREGA Job Card

9. As per KYC norms, branches should monitor:}~cash deposits 10 lakhs and above in deposit accounts~cash payment of 10 lakhs and
above in deposit accounts=cash receipt/cash payment Rs. 10 lakhs or above in deposits accounts including CC/OD~Only cash deposit in Savings
account for Rs 10 lakhs and above

10. The cut-off limit of Rs. 10 lacs and above for aggregate cash deposits for reporting to FIU is:}~Per day=Per month~Per quarter~Per half-
year
11. In an account is classified as high risk, the fresh KYC documents are be obtained after years:}~10 years~8 years~3 years=2 years

12. As per KYC guidelines, which one of the following customers is having high risk:}~Central Govt. employee~State Govt. employee~Small
business man=Politically exposed person resident abroad

13. FATF is an inter-governmental body of G7 group of countries, a policy making body which sets standards to combat money laundering
and financing of terrorism. FATF stands for:}~Fight against terrorist financing~Financial association task force~Financial action on terrorist
financing=Financial action task force

14. Branches should not open deposit/advances accounts of banned/ terrorist organisations as circulated by:}~IRDA~SEBI~AMFI=FIU

15. Is India a member of FATF:}=Yes~No~Has applied for inclusion~Is likely to be made a member

16. What is term Hot Money used for:}~black money~white money~a money which is hard to come but easy to go=a money which comes
easily and goes easily too

17. Which of the following is/are true regarding FERA, 1973:}~ Law violators were treated as criminal offenders~Enforcement Directorate had the
power to arrest any person of suspicion~It aimed at minimizing dealings in forex and foreign securities=All of the above

18. Indias foreign exchange rate system is:}~Free float=Managed float~Fixed~Fixed target of band

19. The demand for domestic currency in the foreign exchange market is indicated by the following transactions in balance of
payment:}~Export of goods and services~Import of goods and services=Export of goods and services and capital inflows~Import of goods and
services and capital outflows

20. In FEMA, violation of the act is a civil offense, and is:}=Compoundable~ non-compoundable~ both (a) and (b)~ none of the above

21. FEMA (Foreign Exchange Management Act) was finally implemented in the year:}~1991~1997=2002~2007

22. In India FERA has been replaced by:}=FEMA~FETA~ FENA~FELA

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