Quiz: AML – KYC and Customer Due Diligence

You are the KYC/CDD Manager, reviewing a private firm with high turnover and managed by influential persons. A large distributor has introduced a client, who is an Indian and fresh graduate from an Ivy League university in US. She is working for a global investment bank. What is the type of due diligence would you be performing?

Which of the following is true about the adverse media and negative news search of customers?

Which of the following is a reason why source of funds and source of wealth is required to be maintained by a registered intermediary?

What represents the baseline or standard risk of doing business, in AML framework

Which of the following customers do not ordinarily require enhanced due diligence?

Which of the following is not a risk category usually followed in customer risk categrisation?

Who among the following are listed under Clients of Special Category under SEBI Guidelines on AML/CFT?
(i) Managing Director of a Public Sector Bank
(ii) High Networth Individuals
(iii) Wholly owned-subsidiary of a listed entity
(iv) Companies having close family shareholdings
(v) Companies offering foreign exchange offerings

Which of the following should not be a major factor in determining what risks a customer exposes the organisation to?

Which of the following is not a red flag of a shell company?

Neeraj is a Client Manager in a retail securities firm and a lady had reached out to him to open a new trading account. Which of the following is a suspicious activity, that Neeraj should be concerned about?

A\’ is a very well-known customer of the institution, due to long association and frequent transactions. Recently there have been a few large amounts credited and moved to the PMS account. On enquiring, the client provided the necessary information that there was a settlement on account of inheritance with suitable documents to show, as per the organisation\’s AML Policy. Which of the following is an appropriate action to follow?

How long should the KYC and Client Due Diligence records be maintained by the registered intermediary?

Which of the following is not a mandatory KYC detail?

Which of the following is not a Original Valid Document ffor KYC purposes

Ultimate Beneficial Owner need not be natural person

Client identification may be required to be conducted for existing clients, as and when required

Which of the following is true about Politically Exposed Persons?

Which of the following options is False?

Investment Immigration Programme promotes the small economies of such jurisdictions, and does not impact their economies.

The client onboarding team has identified a prospective client as the private secretary to the member of the state assembly. Which of the following is the best option to be followed?

Which among the following is/are true about KYC & CDD?

You are the KYC/CDD Manager, reviewing a private firm with high turnover and managed by influential persons. The information available is not sufficient and the diligence has not been completed. The Head of Business is in great urgency to onboard the client, as major deals are expected. Any undue delay could affect the business prospects. What is the best option available with you, to ensure that the best interests of the Organisation is taken care?

Which of the following departments is in the third line of defense, in the classic three lines of defense model?

Which of the following need not be approved by the Board of Directors?