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</p> Signup and view all the answers

    Which student has the lowest score among those listed?

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

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

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

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

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

    What date is noted on the correspondence regarding the guide?

    <p>16.12.2024</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</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</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</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.</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.</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.</p> Signup and view all the answers

    What characterizes a Shell Bank?

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

    Which of the following actions qualifies as a transaction?

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

    What constitutes a suspicious transaction?

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

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

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

    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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    Related Documents

    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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