AML---EXAM ANSWERS

1. Cooperation with law enforcement agencies meanssharing

2. Before offering its services to its correspondent banks ICICI bank will..check
3. At which stage of the money laundering process it is relatively easy to detect the
crime.placement
4. Risk profiles of customer segments should be submitted to the board of directors of the
bank.WRONG FALSE
5. What approach would ICICI bank adopt in implementing its anti money laundering
framework.RISK BASED
6. SBU compliance officer also does..MLRO
7. Appointing a compliance officer within a organization falls under which aspect of money
laundering regulations. INTERNAL
8. SBU compliance officer is responsible forONLY A.PARTIALLY
9. Which of these customers fall under the high risk category..SOCIETIES..PARTIALLY
10. Money laundering is..WRONG ANSWER C
11. The stage where legitimate explanation is given to illegitimate funds is called.INTEGRATION
12. Companies that are set up according to the laws of the land but do not do any real business are
called..SHELL
13. Appropriate organization structure is one of the.A
14. Illegal activity where stacks of gold, cash, jewllery or even rare stamps are moved from place to
place is called..SMUGGLING
15. KYC procedures will be applicable to existing customers only if the risk profile of the customer or
customer segment changes from low to high..TRUE
16. Before employing temporary or outsourced people ICICI bank adheres to..WRONG AML FRAME
WORK
17. Use of multiple cash deposits each smaller than the minimum cash reporting requirements is
calledSMURFING
18. ICICI bank maintains records on customer transactions in order to..SUBMIT TO RBI
19. Reports on anti money laundering compliance to regulatory agencies is called..A AND
C.PARTIALLY
20. At the integration stage of the money laundering process..ILLIGAL FUNDS.PARTIIALLY
21. This means also features in the placement methods of laundering money.B WRONG ..C
22. Revised anti money laundering guidelines of RBI cover.A AND B..PARTIALLY
23. Consequences of money laundering are..A AND C PARTIALLY
24. Financial transactions that are not in compliance with law are to be.BLOCKED
25. Who can call for records defined in the section 13 of PMLA..A WRONG COMPLIANCE OFFICER
26. Facilities provided by the bank for the transfer of money via electronic media are
called.ELECTRONIC TRANSFER
27. A bank which doesn`t have any physical presence in any country is called.SHELL BANK
28. Effective element of a Know your customer (KYC) procedure is.A

29. Which section of the PMLA talks about civil proceedings.WRONG..SECTION 13,15
30. Internal controls must be adequately supplemented by..EFFECTIVE AUDIT FUNCTION
31. The bank`s approach for establishing a customer behavior pattern includes.BOTH
32. Which section of the PMLA talks about banking companies, financial institutions and
intermediaries should maintain records..12 WRONG ANSWER SECTION 13
33. FATF guidelines are intended to meet..A
34. FATF provides guidelines for anti money laundering policies and procedures at.THREE LEVELS
35. Customer identification procedure for legal person is.AUTHORISED..OPTION A
36. Collating and maintaining AML records is the responsibility of..SBU WRONG ANSWER MLRO
37. Transactions that are inconsistent with the customer`s known legitimate activities are
called..SUSPECIOUS
38. Process whereby people send each other money without going through the banking system is
called..ALTERNATIVE
39. Which intergovernmental body develops promotes anti money laundering guidelines..FATF
40. Information of the violation of the provisions of section 12 is provided to the director by. BANK
MLRO
41. Placement stage is when cash is channeled into..BANKS
42. Separating the funds from their illegal source is called..LAYERING
43. Placement methods using banking and financial institutions is broadly divided into..A AND
B.PARTIALLY
44. FATF guidelines consist of how many regulations..40
45. All SBUs would conduct risk profiling of various..CUST SEGMENTS
46. Placement methods are broadly divided into..A..PARTIALLY
47. Person responsible for monitoring day-to-day implementation of ICICI bank`s groups AML policy
and procedures isMLRO
48. What forms an integral part of ICICI bank`s group AML policy.WRONG VERIFICATIONB
49. How many special regulations were issued to combat terrorist financingWRONG 15
50. At what point it is difficult for the bank to distinguish between legal and illegal funds.WRONG
INTEGRATION
51. ICICI bank will have proper record maintenance policies and procedures in place to--WRONG-C
52. AN card issued by income tax department is used as---IDENTITY WRONG --BOTH
53. Common means of integrating money into the financial system is..ANSWER..C
54. Basic due diligence is an approach the bank takes to---A
55. This is not a step in the money laundering processWRONG---A
56. Use of multiple cash deposits each smaller than the minimum cash reporting requirements is
called.B
57. Multiple accounts set up by the same person with standing instructions is called..WRONG..A
58. Companies that are set up according to the laws of the land but do not do any real business are
called.WRONG---A
59. In submitting information to MLRO all SBUs must useWRONG----B
60. ICICI bank will monitor all cash transactions beyond the threshold limit set by the..WRONG --A
61. Before employing temporary or outsourced people ICICI bank adheres toWRONG --A
62. MLRO will escalate the suspicious transaction to..B
63. Regulations stating that banking companies, financial institutions, intermediaries and their
officers shall not be liable to any civil proceedings against them for furnishing information are
laid down inANSWER C
64. ICICI bank maintains records on customer transactions in order to..WRONG..B
65. Customer identification procedures fall under which aspect of money laundering regulations
66. Risk profiles of customer segments should be submitted to the MLRO..T
67. Banks are required to apply basic due diligence forLOW RISK
68. Passport of the customer is used for---
69. Laundering money by putting it in cash intensive businesses like restaurants is calledB
70. At what point it is difficult for the bank to distinguish between legal and illegal funds.A
71. MLRO will submit the quarterly report toWRONG..AMLG
72. Above the AML framework is,..WRONGAMLG
73. The stage where clean money is mixed with illegal money to disguise it further is calledB
WRONG TRAFICKING
74. Which section of the PMLA talks about procedure and manner of furnishing
information13.WRONG 14
75. The bank shall deal with the bank providing services to shell banks only with the prior approval
of the bank`s AMLG..T
76. Which section of the PMLA talks about the powers of the director to impose fines..13