📘 Advanced KYC & AML MCQs (Without Answers)
Section A: Regulatory Framework (1–15)
1. Under PMLA, 2002, reporting entities include:
a) Banks
b) Financial institutions
c) Intermediaries
d) All of the above
2. The threshold for reporting cash transactions under PMLA is:
a) ₹10 lakh
b) ₹5 lakh
c) ₹50,000
d) ₹1 crore
3. Which regulator mandates KYC for mutual funds in India?
a) SEBI
b) RBI
c) IRDAI
d) Ministry of Finance
4. The FATF Recommendations are:
a) 40 + 9 Special Recommendations
b) 20 Recommendations
c) 10 Principles
d) 50 Guidelines
5. Which section of PMLA deals with reporting obligations?
a) Section 12
b) Section 5
c) Section 20
d) Section 30
6. FIU-IND was established in:
a) 2004
b) 2000
c) 2006
d) 2010
7. Basel Committee guidelines on KYC were issued in:
a) 2001
b) 1999
c) 2005
d) 2010
8. Which directive governs AML in the EU?
a) EU AML Directives (5th Directive)
b) GDPR
c) MiFID II
d) Solvency II
9. Which Act empowers RBI to issue KYC guidelines?
a) Banking Regulation Act, 1949
b) Companies Act
c) Income Tax Act
d) GST Act
[Link] Wolfsberg Group is known for:
a) AML Principles for Private Banking
b) Tax guidelines
c) HR policies
d) Marketing
[Link] Transaction Reports (STRs) must be filed with:
a) FIU-IND
b) RBI
c) SEBI
d) IRDAI
[Link] term “beneficial owner” refers to:
a) Person who ultimately owns/controls an account
b) Nominee
c) Signatory
d) Auditor
[Link] FATF recommendation deals with customer due diligence?
a) Recommendation 10
b) Recommendation 20
c) Recommendation 30
d) Recommendation 40
[Link] Exposed Persons (PEPs) require:
a) Enhanced Due Diligence
b) Simplified Due Diligence
c) No Due Diligence
d) Normal KYC
[Link] compliance officers must report directly to:
a) Senior management/Board
b) HR department
c) Marketing team
d) Tax authorities
Section B: Risk & Due Diligence (16–35)
[Link] Due Diligence (EDD) is triggered by:
a) High-risk customers
b) Low-risk customers
c) Small accounts
d) Normal savings accounts
[Link] is a red flag for money laundering?
a) Structuring deposits below threshold
b) Salary credit
c) Utility bill payment
d) School fees
[Link] categorization in KYC is based on:
a) Customer profile & transaction behavior
b) Marketing needs
c) HR policies
d) Tax filing
[Link] is NOT a valid KYC document?
a) Passport
b) Aadhaar
c) Driving License
d) Movie ticket
[Link] in money laundering refers to:
a) Complex transactions to obscure origin
b) Initial placement
c) Final integration
d) Tax filing
[Link] stage of money laundering involves:
a) Reintroducing illicit funds into economy
b) Structuring deposits
c) Offshore transfers
d) Initial placement
[Link] is a high-risk indicator?
a) Offshore shell companies
b) Salary credit
c) Utility bill payment
d) School fees
[Link] Due Diligence is allowed for:
a) Small accounts
b) Corporate accounts
c) NRI accounts
d) High-value accounts
[Link] periodicity for high-risk customers is:
a) Every 2 years
b) Every 5 years
c) Every 10 years
d) Never
[Link] ownership threshold in India is:
a) 25%
b) 10%
c) 50%
d) 75%
[Link] is a suspicious activity?
a) Multiple accounts with same address
b) Salary credit
c) Utility bill payment
d) School fees
[Link] monitoring systems are:
a) Automated transaction monitoring
b) HR software
c) Marketing tools
d) Tax filing software
[Link] FATF recommendation deals with record-keeping?
a) Recommendation 11
b) Recommendation 20
c) Recommendation 30
d) Recommendation 40
[Link]/AML helps in combating:
a) Terrorist financing
b) Marketing
c) HR policies
d) Tax filing
[Link] is NOT part of AML compliance?
a) Reporting suspicious transactions
b) Customer identification
c) Staff training
d) Product pricing
[Link] compliance requires:
a) Internal audits
b) Marketing
c) HR recruitment
d) Product pricing
[Link] is a valid proof of address?
a) Electricity bill
b) Movie ticket
c) Shopping bill
d) School ID card
[Link] programs require:
a) Customer due diligence
b) Advertising
c) HR training
d) Marketing
[Link] is a reporting entity under PMLA?
a) Banks
b) Financial institutions
c) Intermediaries
d) All of the above
[Link] must be filed within:
a) 7 days
b) 30 days
c) 60 days
d) 90 days
Section C: Practical Applications (36–50)
[Link]/AML is part of:
a) Compliance framework
b) Marketing strategy
c) HR policy
d) Tax filing
[Link] is a suspicious transaction?
a) Large cash deposits inconsistent with profile
b) Salary credit
c) Utility bill payment
d) School fees
[Link] compliance officers are responsible for:
a) Monitoring transactions
b) Advertising
c) HR recruitment
d) Product design
[Link] is a red flag in trade-based money laundering?
a) Over/under invoicing
b) Salary credit
c) Utility bill payment
d) School fees
[Link] measures help protect:
a) Financial system integrity
b) Marketing
c) HR policies
d) Tax filing
[Link] is a valid proof of identity?
a) Passport
b) Electricity bill
c) Shopping bill
d) Movie ticket
[Link] compliance requires reporting of:
a) Cash transactions above threshold
b) Salary credit
c) Utility bill payment
d) School fees
[Link] is a suspicious activity in insurance?
a) Early surrender of high-value policies
b) Normal premium payment
c) Utility bill payment
d) School fees
[Link] monitoring systems detect:
a) Unusual transaction patterns
b) HR recruitment
c) Marketing trends
d) Tax filing
[Link] is a high-risk customer category?
a) Non-resident accounts
b) Salary accounts
c) Utility bill payers
d) School students
[Link] compliance requires:
a) Staff training
b) Marketing
c) HR recruitment
d) Product pricing
[Link] is a suspicious activity in securities market?
a) Sudden large volume trades inconsistent with profile
b) Normal SIP investment
c) Utility bill payment
d) School fees
[Link] compliance ensures:
a) Transparency in financial system
b) Marketing success
c) HR recruitment
d) Tax filing
[Link] is a suspicious activity in banking?
a) Frequent international wire transfers without business rationale
b) Salary credit
c) Utility bill payment
d) School fees
[Link]/AML ensures:
a) Transparency and integrity in financial system
b) Marketing success
c) HR recruitment
d) Tax filing