Anti Money Laundering.....Key

Customer identification procedure for legal person is Identity of authorized signatories Placement methods are broadly divided into None of the above F Facilities provided by the bank for the transfer of money via electronic media are called

Fund transfers F Electronic transfers

Basic due diligence is an approach the bank takes to Identify and verify customers This is not a step in the money laundering process Integration stage F Recovery stage Reports on anti money laundering compliance to re gulatory agencies is called aLL MLRO will escalate the suspicious transaction to AMLG At which stage of the money laundering process it is relatively easy to detect the crime Placement stage Detailed guidelines on identification of suspicious transactions is given to the employees via e-mail F

e-circular Which of these is not non banking method of laundering money Alternative remittances F Smuggling

F According to FATF money laundering is Processing of criminal proceeds in order to disguise their illegal

origin All SBUs must implement necessary procedures and controls to ensure AMLG F According to RBI guidelines branches should intimate their controlling offices about cash transactions above Rs 1 million Separating the funds from their illegal source is called Layering AN card issued by income tax department is used as Both F Identity proof  Information of the violation of the provisions of section 12 is provided to the director by Principal

officers Money laundering is Converting legal money into illegal money Customer identification procedures fall under which aspect of money laundering regulations Know your

customer (KYC) Laundering money by putting it in cash intensive businesses like restaurants is called Export import

transactions F Business recycling The stage where legitimate explanation e xplanation is given to illegitimate funds is called Integration stage

All SBUs would conduct risk profiling of various Counter party banks F Customer segments Collating and maintaining AML records is the responsibility of SBU compliance officer This is the preferred means of laundering money accumulated by tax evasion Trusts F Shell

corporations F How many special regulations were issued to combat terrorist financing 15 F 9 A bank which doesn`t have any physical presence in any co untry is called Counter party bank F Use of multiple cash deposits each smaller than the minimum cash reporting requirements is called

Smurfing Adequate diligence is the fundamental requirement for any business transaction TRUE Revised anti money laundering guidelines of RBI cover ALL Who reviews and approves risk profiling of various product segments MLRO Multiple accounts set up by the same person with standing instructions is called Multiple savings F

accounts Internal controls must be adequately supplemented by External controls F Before offering its services to its correspondent banks ICICI bank will Check whether the correspondent

bank complies with an acceptable money laundering program Placement methods using banking and financial institutions is broadly divided into None of the above F FATF guidelines are intended to meet Customer due diligence procedure ICICI bank will have proper record maintenance policies and procedures in place to Ensure required

documents are available within reasonable period of time SBU compliance officer also does Making specific request to AML authority F Cooperation with law enforcement agencies means Recording transactions and maintaining records F

Sharing and reporting information when r equired Pillars of AML standards are all Consequences of money laundering are aLL The bank shall deal with the bank providing services to shell banks only with the prior approval of the bank`s AMLG TRUE Process whereby people send each other money without going through the banking system is called

Smurfing F Alternative remittances

What forms an integral part of I CICI bank`s group AML policy Customer acceptance policy Passport of the customer is used for None of the above F Illegal activity where stacks of gold, cash, jewllery or even rare stamps are moved from place to place is called Smuggling This document is accepted as an identity proof at the time of opening the account Driving license Placement stage is when cash is channeled into Banks ICICI bank maintains records on customer transactions in order to Reconstruction of any transactions Regulations empowering the director to levy a fine or order on banking companies or financial institutions or intermediaries for failure to comply with provisions of section 12 are laid down in

Section 13 Appointing a compliance officer within a organization falls under which aspect of money laundering regulations Cooperation with law enforcement agencies F Compliance with law F Effective element of a Know your customer (KYC) procedure is Customer identification F Above the AML framework is Audit committee Money laundering is usually carried out in Three stages Each SBU will develop appropriate measures for t ransaction processing in consultation with MLRO What approach would ICICI bank adopt in implementing its anti money laundering framework Risk

based Which intergovernmental body develops promotes anti money laundering guidelines FATF Govt of India in consultation with RBI has notified the r ules under PMLA, for banking companies, financial institutions and intermediaries for None of the above F Banks are required to apply basic due diligence for low risk customers The stage where clean money is mixed with illegal money to disguise it further is called Integration F

Layering From the cessation of the date of the transaction, ICICI bank maintains records of the transaction for a period of 10 years Risk profiles of customer segments should be submitted to t he MLRO TRUE

FATF guidelines consist of how many regulations 40

Which of these customers fall under the high risk category Societies/Associations/Trusts The bank`s approach for establishing a customer behavior pattern includes Basic due diligence F Companies that are set up according to the laws of the land but do not do any real business are called

Shell corporations Multiple accounts set up by the same person with standing instructions is called Walkin accounts The MLRO report would contain None of the above F 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 in Section

14 Significant suspicious activity is reported to the audit committee on Quarterly basis Which section of the PMLA talks about banking companies, financial institutions and intermediaries should maintain records Section 12 According to PMLA obligations the records of the transactions should be maintained for 10 years What are the key anti money laundering objectives of ICICI bank None of the above F At what point it is difficult for the bank to distinguish between legal and illegal funds Placement F

Layering F ICICI bank will monitor all cash t ransactions beyond the threshold limit set by the AML framework F This means also features in the placement m ethods of laundering money Electronic transfers Financial transactions that are not in compliance with law ar e to be Blocked and frozen When a customer moves from a low risk to high risk the approach used is Enhanced due diligence Driving license of the customer is used for Identity proof  Photo debit card of the customer is used for Invalid Transactions that are inconsistent with the customer`s known legitimate activities are called Suspicious

transactions Clause (b) of sub section (1) of section 12 of PMLA states that banking companies/financial institutions/intermediaries should furnish information to Director

Which section of the PMLA talks about civil procee dings Section 14 Before employing temporary or outsourced people ICICI bank adheres to HR policies This is a suspicious transaction Customer makes or receives huge deposits or remittances along with

pre-closure of loans payments of previous over dues Risk profiles of customer segments should be submitted to t he board of directors of the bank TRUE F SBU compliance officer is responsible for All None of the above f  At the integration stage of the money laundering process None of the above F MLRO will submit the quarterly report to AMLG F What does reselling and repurchasing assets for laundering money do Furthers integrationf  Appropriate organization structure is one of the Internal policies and procedures F