KYC/AML/CFT Policy Overview
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Questions and Answers

Which student has the highest score listed?

  • Rakesh Chowdary Ghanta
  • Deepak Sayana (correct)
  • Ajay Kumar
  • Bikash Kumar Singh

Which of the following students is associated with S.T.C.Mangalore?

  • Dharamjeet Kaur Neogi
  • Ajit Keshri
  • Abhishek Anand (correct)
  • Biswajit Sahu

Identify the student with a score less than 40000.

  • Deepak Kumar
  • Ajay Kumar
  • Alok Tripathi
  • Dharamjeet Kaur Neogi (correct)

Which location is NOT mentioned in the student list?

<p>Bangalore (C)</p> Signup and view all the answers

Which student has the lowest score among those listed?

<p>Dharamjeet Kaur Neogi (C)</p> Signup and view all the answers

What is the primary purpose of the 'Career Guide 2025' as stated by the Principal?

<p>To provide reliable and user-friendly resources (A)</p> Signup and view all the answers

How long has the Staff College been publishing the Career Guide since its relaunch?

<p>Four years (D)</p> Signup and view all the answers

What feature is retained in the 13th Edition of the Career Guide?

<p>In-house writing and compilation (A)</p> Signup and view all the answers

Who is recognized for their contributions to the Career Guide initiatives?

<p>All faculties involved in the project (C)</p> Signup and view all the answers

What aspect does the Principal emphasize about the guide's collective efforts?

<p>Nurturing internal expertise (D)</p> Signup and view all the answers

What date is noted on the correspondence regarding the guide?

<p>16.12.2024 (B)</p> Signup and view all the answers

Which aspect of the Career Guide is explicitly stated in the intro by the Principal?

<p>Serving as a compass for career progression (C)</p> Signup and view all the answers

What is highlighted as a hallmark feature of the Career Guide 2025?

<p>Being an e-Book for accessibility (B)</p> Signup and view all the answers

What does the acronym CRS stand for in the context of international tax compliance?

<p>Common Reporting Standards (D)</p> Signup and view all the answers

Which of the following best describes the requirement of the FATCA?

<p>Mandates reporting of financial accounts held by U.S. taxpayers. (A)</p> Signup and view all the answers

What is the role of IGAs in the context of FATCA?

<p>To improve international tax compliance and implement FATCA. (B)</p> Signup and view all the answers

Which of the following entities would qualify as Regulated Entities (REs)?

<p>All banks and financial institutions licensed under the Banking Regulation Act. (C)</p> Signup and view all the answers

What characterizes a Shell Bank?

<p>A bank with no physical presence and unaffiliated with regulated entities. (C)</p> Signup and view all the answers

In the context of financial compliance, what does 'physical presence' mean?

<p>Meaningful management located within the country. (B)</p> Signup and view all the answers

What type of institutions are classified as All India Financial Institutions (AIFIs)?

<p>Financial institutions established by government to provide long-term credit. (A)</p> Signup and view all the answers

Which entities fall under the category of Payment System Providers (PSPs)?

<p>Entities that facilitate electronic payment systems. (C)</p> Signup and view all the answers

What is the definition of a Politically Exposed Person (PEP)?

<p>An individual entrusted with prominent public functions by a foreign country. (D)</p> Signup and view all the answers

Which of the following actions qualifies as a transaction?

<p>Opening an account and transferring funds. (A)</p> Signup and view all the answers

What constitutes a suspicious transaction?

<p>Transactions that give rise to reasonable grounds of suspicion. (A)</p> Signup and view all the answers

Which of the following is NOT a characteristic of a suspicious transaction?

<p>Transactions performed under standard industry practices. (C)</p> Signup and view all the answers

What is the definition of a wire transfer?

<p>An electronic transaction to transfer funds from one bank to another. (B)</p> Signup and view all the answers

Which of the following scenarios would be categorized under financing activities related to terrorism?

<p>Transactions involving funds suspected to be linked to terrorist activities. (A)</p> Signup and view all the answers

What does a fiduciary relationship imply in the context of transactions?

<p>A legal or ethical relationship of trust between two or more parties. (D)</p> Signup and view all the answers

What is the primary purpose of identifying Politically Exposed Persons (PEPs)?

<p>To mitigate risks associated with money laundering and corruption. (D)</p> Signup and view all the answers

What is emphasized as essential for professionals in the banking sector according to the forwards?

<p>Agility and adaptability (A)</p> Signup and view all the answers

Who is recognized for their efforts in producing the 'Career Guide 2025'?

<p>Mrs. Regimol B G (C)</p> Signup and view all the answers

What does the 'Career Guide' primarily aim to provide to the workforce?

<p>A strategic asset for personal growth (C)</p> Signup and view all the answers

What is a significant factor influencing the transformation in the banking industry mentioned in the forwards?

<p>Technological advancements (A)</p> Signup and view all the answers

How is the 'Career Guide' described in terms of its usefulness?

<p>As a resource for coping with industry changes (D)</p> Signup and view all the answers

What does Ajay Kumar Srivastava encourage staff members to do with the 'Career Guide'?

<p>Leverage it for continuous learning and advancement (C)</p> Signup and view all the answers

What overarching theme is presented in both forwards regarding the future of banking?

<p>Need for professionals to embrace change (C)</p> Signup and view all the answers

Which aspect of the banking industry’s evolution does technological advancement directly relate to?

<p>Enhancement of operational efficiency (C)</p> Signup and view all the answers

What is the primary purpose of Customer Due Diligence (CDD) at the commencement of an account-based relationship?

<p>To identify and verify the customer using reliable sources (D)</p> Signup and view all the answers

Which process is required to understand the customer's business during CDD?

<p>Taking reasonable steps to comprehend the nature of the business (B)</p> Signup and view all the answers

In which scenario is identification of a beneficial owner particularly crucial?

<p>When a customer is acting on behalf of another entity (C)</p> Signup and view all the answers

What does the term 'Periodic Updation' signify in the context of KYC?

<p>Steps taken to keep customer data updated and relevant (C)</p> Signup and view all the answers

What does 'Non-face-to-face customers' refer to in KYC procedures?

<p>Customers who open accounts without meeting representatives in person (B)</p> Signup and view all the answers

Which type of person does the definition of 'Person' in the context of KYC NOT include?

<p>An anonymous online user (A)</p> Signup and view all the answers

Which is NOT a component of Customer Due Diligence (CDD)?

<p>One-time assessment of previous financial transactions (D)</p> Signup and view all the answers

What is the significance of 'On-going Due Diligence' in maintaining a customer relationship?

<p>Ensuring transactions align with the customer's profile and funds source (A)</p> Signup and view all the answers

Flashcards

Adaptability

The ability to change and adjust to new situations quickly and effectively.

Agility

The ability to move and react quickly and easily.

Transformation

The process of making changes to improve something.

Continuous Learning

The process of learning and acquiring new knowledge or skills.

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Anticipating the Future

The ability to anticipate and prepare for future changes and challenges.

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Changing Customer Preferences

The ability to understand and respond to the needs of customers in a dynamic environment.

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Technological Advancements

The use of technology to improve banking processes and services.

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Career Guide

A comprehensive resource that provides information and guidance on various aspects of banking.

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KYC

Know Your Customer (KYC) is a process conducted by banks to verify the identity and address of customers, aiming to prevent money laundering and terrorist financing activities.

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AML

Anti-Money Laundering (AML) refers to the set of laws, regulations, and procedures designed to combat money laundering, which involves disguising the origin of illegally obtained funds.

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CFT

Combating the Financing of Terrorism (CFT) focuses on preventing individuals and organizations from providing financial support to terrorist activities.

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Bank Compliance

KYC, AML, and CFT are essential elements of a bank's compliance framework. They ensure responsible banking practices by preventing criminal activities like money laundering and terrorist financing.

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Module-A General Banking

Module-A General Banking is a course or section that focuses on the fundamentals of banking operations, including key areas like KYC, AML and CFT.

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What is the "Career Guide"?

The "Career Guide" is a resource for Indian Overseas Bank employees, offering guidance and information for career development.

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How is the "Career Guide 2025" made accessible?

The Career Guide is meant to be easily accessible to all employees. It's available in a digital format, making it convenient to access.

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Who creates the "Career Guide"?

The "Career Guide 2025" is created by a team of professionals within the Indian Overseas Bank Staff College and STCs.

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What does the "Career Guide" represent?

The "Career Guide" is a product of the collective efforts of the Staff College and STCs, reflecting the dedication of the institution to share knowledge.

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What does the 13th edition of the "Career Guide" signify?

The "Career Guide 2025", the 13th edition, showcases a commitment to continuous improvement and providing reliable, user-friendly resources for employees.

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What is the goal of the "Career Guide"?

The "Career Guide" aims to provide information and inspiration, guiding employees in their professional endeavors.

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Who encourages employees to use the "Career Guide"?

The Principal of the Staff College encourages all Indian Overseas Bank employees to utilize the "Career Guide" as a resource for career development.

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Why is the "Career Guide 2025" important?

The "Career Guide" is a valuable tool for Indian Overseas Bank employees, offering guidance and support for their career progression.

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Politically Exposed Persons (PEPs)

Individuals holding prominent public positions in a foreign country, including heads of state, senior politicians, and military officials.

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Transaction

Any action involving money, including transactions like buying, selling, borrowing, gifting, or opening accounts.

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Suspicious Transaction

A transaction raising suspicion that it might involve illegal funds or terrorist financing.

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Terrorist Financing

Transactions involving funds linked to, or used for, terrorism or terrorist organizations.

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Wire Transfer

Money transfer conducted electronically through financial institutions.

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Customer Due Diligence (CDD)

The process of verifying a customer's identity and understanding their financial activities.

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KYC Templates

A template used to collect and report Know Your Customer (KYC) data to the regulatory body.

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Non-Face-to-face customer

A customer who opens an account without visiting the bank's physical branch.

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On-going Due Diligence

Regularly monitoring transactions in a customer's account to ensure they align with their financial profile.

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Periodic Updation

Regularly updating customer information and documents to maintain accuracy.

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Person

Includes individuals, companies, organizations, and even agencies controlled by these entities.

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Beneficial Owner

The individual who ultimately owns or controls a business or asset.

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Reliable and Independent Sources of Identification

Reliable and Independent sources of information used to verify a customer's identity.

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Common Reporting Standards (CRS)

A standard designed for countries to share financial account information automatically, based on an international agreement.

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Foreign Account Tax Compliance Act (FATCA)

A US law requiring foreign financial institutions to report accounts held by US citizens or entities with substantial US ownership.

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Inter Governmental Agreement (IGA)

An agreement between India and the United States, aimed at improving tax compliance and implementing FATCA.

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Shell Bank

A bank without a physical presence in its country of incorporation and not overseen by a regulated group.

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Physical Presence

A bank that holds a physical presence in its country of incorporation, meaning it has a real office with management and staff.

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Shell Bank

A bank incorporated and licensed in a country, but without a physical presence and independent oversight.

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Regulated Entities

The term 'regulated entity' in the context of banking refers to institutions subject to specific regulations and oversight.

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Regulated Entities

Refers to various financial institutions like commercial banks, non-banking finance companies, and payment providers - all of which are subject to specific regulations.

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Study Notes

KYC/AML/CFT Policy

  • CDD (Customer Due Diligence): Involves identifying customers, verifying their identities, understanding their business relationships, and determining beneficial owners.
  • KYC Templates: Pre-defined formats to collect and report KYC data to designated authorities.
  • Non-face-to-face customers: Customers who open accounts without visiting branches or meeting officials.
  • Ongoing Due Diligence: Regular monitoring of account transactions for consistency with customer profiles and fund sources.
  • Periodic Updates: Regular reviews of collected customer documents and data to ensure accuracy.
  • Person: Includes individuals, Hindu undivided families, companies, firms, associations of persons, artificial juridical persons, or agencies/offices controlled by the above.
  • Politically Exposed Persons (PEPs): Individuals entrusted with prominent public functions by foreign countries.
  • Transaction: Broad definition including account openings, fund transfers, safety deposit box use, fiduciary relationships, and payments for legal obligations.
  • Suspicious Transaction: A transaction suspected of involving proceeds from illegal activities, unusual complexity, lack of economic rationale, or terrorism financing.
  • Wire Transfer: Electronic fund transfer between a financial institution and a beneficiary.
  • Common Reporting Standard (CRS): Reporting standards for automatic information exchange based on international agreements.
  • Foreign Account Tax Compliance Act (FATCA): US law requiring foreign financial institutions to report accounts held by US taxpayers.
  • Intergovernmental Agreement (IGA): Agreement between Indian and US governments for tax compliance and FATCA implementation.
  • Regulated Entities (REs): All scheduled commercial banks, regional rural banks, local area banks, co-operative banks, and other entities licensed under the Banking Regulation Act. Also includes financial institutions, non-banking finance companies, asset reconstruction companies, payment system providers, and authorized persons.
  • Shell Bank: A bank without a physical presence in the country where they are incorporated, and not part of a supervised financial group.

Table of Contents

  • General Banking Module covers KYC/AML/CFT policy.

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Career Guide 2025 PDF

Description

This quiz covers the fundamental aspects of KYC (Know Your Customer), AML (Anti-Money Laundering), and CFT (Combating the Financing of Terrorism) policies. Learn about Customer Due Diligence (CDD), KYC templates, and the importance of ongoing due diligence. Test your understanding of key concepts such as Politically Exposed Persons (PEPs) and non-face-to-face customers.

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