Dee au) KYC & Money Laundering Questions KYC & M ing M & OPES aL aise Ceo arc oer Start Complete Exam Preparation Gietes Siem Cy eae D> Download App Question 1: View this Question Online > Which of the following statementsis true about Know Your Customer (KYC) regulations? 1. KYCmeans Know Your Customer 2. It wasintroduced under Prevention of Money Laundering Act 3. KYCprocessincludes ID card verification, face verification, document verification suchas utility bills as proof of address, and biometric verification. 4, Banksmust comply with KYC regulations and anti-money laundering regulations to limit fraud. “ ~~" aretrue Answer (Detailed Solution Below) Option 5: All are truecoaching India’s Super Teachers for all govt. exams Under One Roof or Get proficient with the concepts with detailed lessonson the topic among many others. KYC & Money Laundering Question 1 Detailed Solution The correct answeris All are true Key Points + The Reserve Bank of India introduced Know your customer (KYC) guidelines for all banks in 2002 + In 2004, RBI directed that all banks ensure that they are fully acquiescentwith the KYC provisions before December 31, 2005. ~ The main aim of KYG wasto prevent money laundering, terrorist financing, and theft. + Banksshould frame their KYC policies incorporating the following four key elements: > Customer Acceptance Policy, Customer Identification Procedures, Moritoring of Transactions and Risk Management. * Money laundering is the processof making large amounts of money generated by criminal activity, suchas drug trafficking or terrorist funding, appear to have come from a legitimate source. + The Prevention of Money Laundering Act was introduced in 2002 and came into force with effect from 2005. CS anne) CRC DR art Start Complete Exam Preparation Cau oe Dae a Cod Question Bank & Quizzes “Vv D> Download App = Question 2:View this Question Online > ‘* @) In September 2022, the ReserveBank has imposed a penalty of how many rupees Industrial Bank of Korea for non- compliance with certain Know Your Customer (KYC) norms? ; 1. 24 lakh 2. 20 lakh 3. a» 4. 40 lakh 5. 36 lakh Answer (Detailed Solution Below) Option 5: 36 lakh KYC & Money Laundering Question 2 Detailed Solution =~» ( The correct answeris 36 lakh © Key_Points_ + The Reserve Bank has imposed penalties on three entities for non-compliance with regulatory norms. o ' + Apenalty of Rs 36 lakh has been imposed on Industrial Bank of Korea for non-compliance with certain Know Your Customer (KYC) norms. + Apenalty of Rs 59.10 js been imposed on Woori Bank. + A fine of Rs 12.35 lakh n slapped on Indiabulls Commercial Credit Limited. ©; Additional Information — + RBI: + Governor - ShaktikantaDas. + Headquarters - Mumbai. + Founded: 1 April 1935, Kolkate. + The Bank publishes two statutory reports, the Annual Report of the Bank and the Report on Trend and Progress of Benking in India. + Italso publishes Financial Stability Report. ae Ce CaGec Lr costaaoe ee Preace Gale Question Bank pra Download App Question 3: View this Question Online > Know Your Customer (KYC) regulations have been introduced in financial transactions under which of the following regulation? 1. Banking Companies Act» 2. Prevention of Money Laundering Act 3. MBA conker India Act 4. Companies Act 5. Banking Regulation Act Answer (Detailed Solution Below) Option 2 : Prevention of Money Laundering Act KYC & Money Laundering Question 3 Detailed Solution The correct answeris the Prevention of Money Laundering Act. © Key Points. + The Reserve Bank of India introduced Know your customer (KYC) guidelines for all banks in 2002. va + In 2004, RBI directed that all banks ensure that they are fully acquiescentwith the KYC provisions before December 31, 2005. ~ The main aim of KYC wasto prevent money laundering, terrorist financing, and theft. + Banksshould frame their xz cies incorporating the following four key elements: + Customer Acceptance Policy, + Customer Identification Procedures,© Monitoring of Transactions and + Risk Management. + Money laundering is the processof making large amounts of money generated by criminal activity, suchas drug trafficking or terrorist funding, appear to have come from a legitimate source. + The Prevention of Money Laundering Act was introduced in 2002 and came into force with effect from 2005. eRe secon Portia Start Complete Exam Preparation Penn Practice moa Git rear am Gao patos Ett, jownload App Question 4: View this Question Online > KYC compliance is a mandatory exerciseunder the prevention of 2 1. Money Laundering Act, 2001. . Money Laundering Act, 2004 3 QA cere Act, 2002. 4, Money Laundering Act, 2006 . Money Laundering Act, 2007 Answer (Detailed Solution Below) Option 3: Money Laundering Act, 2002. KYC & Money Laundering Question 4 Detailed Solution The correct answeris Money Laundering Act, 2002 © Key_Points_+ KYC compliance is a mandatory exerciseunder the Prevention of Money Laundering Act, 2002. a knportant_pola + 'Know Your Customer’ which refersto the processof identity and addresses verification of all customersand clients by banks, insurance companies, and other institutions either before or while they are conducting transactionswith their customers. + While using the e-KYC service , one hasto authorize through the Unique Identification Authority of India (UIDAI), by directly providing identity/address through biometric authentication to the bank or any businesscorrespondent. ee eee cy ere at Start Complete Exam Preparation if BA) Daily Live Practice (he Ds cholend researc Extra) Download App Question 5: View this Question Online > Know your Customer (KYC) /Anti- Money Laundering (AML) / CFT guidelines to prevent bank from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities, what does "C" standsin "CFT"? 1. Countering 2. Case -@ 4. Combating 5. None of these Answer (Detailed Solution Below) Option 4: CombatingKYC & Money Laundering Question 5 Detailed Solution The correct answer is Combating. + Criminal activities , such as drug trafficking, smuggling, human trafficking, corruption, and others, tend to generate large amounts of profits for the individuals or groups carrying out the criminal act. However, by using funds from suchillicit sources, criminals risk drawing the authorities ' attention to the underlying criminal activity and exposing themselvesto criminal prosecution . In order to benefit freely from the proceeds of their crime, they must therefore concealthe illicit origin of these funds, these types of funds are coming under the category of money laundering activities Terrorist financing oy an collection, or provision of funds with the intention that they may be 0 support terrorist acts or organizations. Funds may stem from both legal and illicit sources. Anti- Money Laundering (AML) and Combating the Financing of Terrorism (CFT) isthe regimes which are maintained by the Financial Action Task Force (FATF) to combating the money laundering activities for terrorist activitiesin whole over the world. ©; Additional_Information. + FATF Headquarters - Paris,France + FATF Head - T Raja Kumar + Establishment Year - 1989 Top KYC & Money Laundering MCQ Objective Questions e al Eee rer peru) Start Complete Exam Preparation Wau ere Gite Cicer aC C Da Sort jownload App Question 6: View this Question Online > Know your Customer (KYC) /Anti- Money Laundering (AML) / CFT guidelines to prevent bank from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities, what does "C* standsin "CFT"? 1. Countering 2. Case4. Combating 5. None of these Answer (Detailed Solution Below) Option 4: Combating KYC & Money Laundering Question 6 Detailed Solution The correct answeris Combating. + Criminal activities , such as drug trafficking, smuggling, human trafficking, corruption, and others, tend to generate large amounts of profits for the individuals or groups carrying out the criminal act. However, by using funds from suchillicit sources, criminals risk drawing the authorities ' attention to the underlying criminal activity and exposing themselvesto eriminal prosecution . In order to benefit freely from the proceeds of their crime, they must therefore conceal he illicit origin of these funds, these types of funds are coming under the category of money laundering activities A Terrorist financing involvegitie solicitation, collection, or provision of funds with the intention that they may be {o support terrorist acts or organizations. Funds may stem from both legal and illicit + Anti- Money Laundering (AML) and Combating the Financing of Terrorism (CFT) isthe regimes which are maintained by the Financial Action Task Force (FATF) to combating the money laundering activities for terrorist activitiesin whole over the world. © Additional Information. + FATF Headquarters - Paris,France + FATF Head - T RajaKumar + Establishment Year - 1989 & eee se petal CRC eta Start Complete Exam Preparation Tea eed reaeaQuestion 7: View this Question Online Know Your Customer (KYC)regulations have been introduced in financial transactions under which of the following regulation? i A Companies Act 2. Prevention of Money Laundering Act 3. Reserve Bank of India Act 4, Companies Act Answer (Detailed Solution Below) Option 2: Prevention of Money Laundering Act KYC & Money Laundering Question 7 Detailed Solution C"~ The correct answeris the Prevention of Money Laundering Act © Key Points. + The Reserve Bank of India introduced Know your customer (KYC) guidelines for all banks in 2002. + In 2004, RBI directed that all banks one that they are fully acquiescentwith the KYC provisions before Decemi , 20 + The main aim of KYC was ent money laundering, terrorist financing, and theft + Banksshould frame their KYC policies incorporating the following four key elements: + Customer Acceptance Policy, © Customer Identification Procedures, + Monitoring of Transactions and + Risk Management. + Money laundering is the processof making large amounts of money generated by criminal activity, suchas drug trafficking or terrorist funding, appear to have come from a legitimate source. + The Prevention of Money Laundering Act was introduced in 2002 and came into force with effect from 2005.eS eer ee) PS ela men) (CM emda re Lecela) Roca econ if ev end Pac MasterCl Cresieucag Exeter Download App Question 8: View this Question Online > Know your Customer (KYC) /Anti- Money Laundering (AML) / CFT guidelines to prevent bank from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities, what does "C" standsin "CFT"? 1. Countering 2. Case /~ 4, Combating 5. None of these Answer (Detailed Solution Below) Option 4: Combating KYC & Money Laundering Question 8 Detailed Solution The correct answer is Combating. + Criminal activities , such as drug trafficking, smuggling, human trafficking; corruption, and others, tend to generate large amounts of profits for the individuals or groups carrying out the criminal act. However, by using funds from such illicit sources, criminals risk drawing the authorities ' attention to the underlying criminal activity and exposing themselvesto criminal prosecution . In order to benefit freely from the proceeds of their crime, they must therefore conceal the illicit origin of these funds, these types of funds are coming under the category oftera es eg + Terrorist financing oly sis collection, or provision of funds with the intention that they may be Uget\to support terrorist acts or organizations. Funds may stem from both legal and illicit + Anti- Money Laundering (AML) and Combating the Financing of Terrorism (CFT) isthe regimes which are maintained by the Financial Action Task Force (FATF) to combating the money laundering activities for terrorist activitiesin whole over the world. E; Additional_Information + FATF Headquarters - Paris,France + FATF Heed - T RajaKumar + Establishment Year - 1989 & eee reac Saye Pela mean) (CM bcm aretha cela) lee ones ees resins bart ead sce Download App Question 9: View this Question Online > In September 2022, the ReserveBank has imposed a penalty of how many rupees Industrial Bank of Korea for non-compliance with certain Know Your Customer (KYC) norms? 1, 24 lakh 2. 30 lakh m 4. 40 lakh 5. 36 lakh Answer (Detailed Solution Below)Option 5: 36 lakh KYC & Money Laundering Question 9 Detailed Solution The correct answeris 36 lakh © key—Points— + The Reserve Bank hasimposed penalties on three entities for non-compliance with regulatory norms. : + A penalty of Rs 36 lakh hes been imposed on Industrial Bank of Korea for non-compliance with certain Know Your Customer (KYC) norms. + Apenalty of Rs 59.10 been imposed on Woori Bank. + A fine of Rs 12.35 lakh n slapped on Indiabulls Commercial Credit Limited. © Additional__tnformation— + RBI: = Governor - ShaktikantaDas. > Headquarters - Mumbai + Founded: 1 April 1935, Kolkata. + The Bank publishes two statutory reports, the Annual Report of the Bank and the Report on Trend and Progress of Banking in india. + It also publishes Financial Stability Report. & India’s #1 Leaming Platform Slam (CM CUM eel l el) Pa be moa bad rear Sree am Gad Prac OR Gee iar cesta Jownload App Question 10: View this Question Online > Know Your Customer (KYC) regulations have been introduced in financial transactions under which of the following regulation? 1. Banking Companies Act 2. Prevention of Money Laundering Act 3.(Re ‘ank of India Act4. Companies Act 5. Banking Regulation Act Answer (Detailed Solution Below) Option 2: Prevention of Money Laundering Act KYC & Money Laundering Question 10 Detailed Solution The correct answeris the Prevention of Money Laundering Act. © Key Points. + The Reserve Bank of India Introduced Know your customer (KYC) guidelines for all banks In 2002. + In 2004, RBI directed that all banks ensute that they are fully acquiescentwith the KYC provisions before December 31, 2005. + The main aim of KYC. wagteyprevent money laundering, terrorist financing, and theft. : Banga ee Aloe ner the following four key elements: > Customer Acce| licy, + Customer Identification Procedures, > Monitoring of Transactions and + Risk Management. + Money laundering is the processof making large amounts of money generated by criminal activity, suchas drug trafficking or terrorist funding, appear to have come from a legitimate source + The Prevention of Money Laundering Act was introduced in 2002 and came into force with effect from 2005. ieee aR Reel Start Complete Exam Preparation COCR Sec ieee oced eo Des cieroy researc g Exoticownload App Question 11: View this Question, Online ‘at isa mandatory exercise under the prevention of 2 1. Money Laundering Act, 2001 2. Money Laundering Act, 2004 . Money Laundering Act, 2002. 4, Money Laundering Act, 2006 5. Money Laundering Act, 2007 Answer (Detailed Solution Below) Option 3: Money Laundering Act, 2002. KYC & Money Laundering Question 11 Detailed Solution The correct answeris Money Laundering Act, 2002 © Key_Points_ + KYC compliance is a man exerciseunder the Prevention of Money Laundering Act, 2002. » Important—Points— + ‘Know Your Customer’ which refersto the processof identity and addresses verification of all customersand clients by banks, insurance companies, and other institutions either before or while they are conducting transactionswith their customers. + While using the e-KYC service, one hasto authorize through the Unique Identification Authority of India (UIDAI), by directly providing identity/address through biometric authentication to the bank or any businesscorrespondent. Ge eee Reh) CL RRA Start Complete Exam PrWein es prabccaccs dlr teste Gucston ane (28) eters jownload App Question 12: View this Question Online > Which of the following stepsare involved in Money Laundering? 1. Placement 2. Layering 3. Integration 4, Counterfeiting 1 ‘~~ 2\1,2and 4 3. Only 3and 4 4, Only 1,2and 3 5. 1,23 and 4 Answer (Detailed Solution Below) Option 4: Only 1,2and 3Pr eee eee) Ree Da cesta Pela CM Clim ele Laced) eo au ales Keb Sa Download App Question 13: View this Question Online > Which of the following statementsis true about Know Your Customer (KYC) regulations? 1. K¥Cmeans Know Your Customer 2. It wasintroduced under Prevention of Money Laundering Act 3. KYCprocessincludes|D card verification, face verification, document verification suchas utility bills as proof of address, and biometric verification. 4, Banksmust comply with KYC regulations and anti-money laundering regulations to limit fraud. 5. All are true Answer (Detailed Solution Below) Option 5: All are trueee eee cy TRS Start Complete Exam Preparation if reyes Practice Dra Ds cholend researc Extra) ownload App Question 14: View this Question Online > Enforcement Directorate enforces the Prevention of Money Laundering Act, 2002 (PMLA) the Enforcementunit wasformed in which of the following years? 1, 1984 2. 1972 3. 1956 4. 1947 5. 1966 Answer (Detailed Solution Below) Option 3: 1956ieee anu Beit Start Complete Exam Preparation Roem contr lee nee pee MasteClasses (EJ Question Bank PYltiz jownload App Question 15: View this Question Online > In Aug 2020, which of the following has received clearance from UIDAI to carry out e-KYC authentication using Aadhaar? 1. IRCTC Info Edge 3. CDSL 4. NSDL . None of the aboveAnswer (Detailed Solution Below) Option 3: CDSL