1. Under PMLA rules, who is considered the "Beneficial Owner" in case of a partnership firm?
Any individual holding more than 25% of profit/capital.
Any individual who essentially holds more than 15% of profit/capital or exercises control.
Only the Managing Partner.
The partner holding the maximum capital.
Explanation:
For partnership firms, the threshold for identifying the beneficial owner is ownership of/entitlement to more than 15% of capital or profits of the partnership, or who exercises control through other means.
2. For "High Risk" customers, banks are required to carry out periodic updation of KYC (Re-KYC) at least once in every:
10 Years
8 Years
5 Years
2 Years
Explanation:
According to RBI KYC norms: High Risk - Every 2 years; Medium Risk - Every 8 years; Low Risk - Every 10 years.
3. Which of the following customers would typically be classified as "Low Risk"?
Non-Face-to-Face customers.
Salaried employees with well-defined salary structure.
High Net Worth Individuals (HNIs).
Jewelers and Bullion Dealers.
Explanation:
Salaried employees, government departments, and small amounts balances are generally Low Risk. HNIs, Jewelers, and Non-face-to-face customers are usually Medium or High Risk due to higher money laundering potential.
4. A "Small Account" (opened without full KYC) has certain limitations. Which of the following is correct?
Balance cannot exceed ?1 Lakh at any time.
Aggregate withdrawals in a month cannot exceed ?50,000.
Foreign remittances are allowed up to ?10,000.
Total credits in a financial year cannot exceed ?1 Lakh.
Explanation:
Limitations of Small Accounts: Total credits in a FY = ?1 Lakh; Balance at any point = ?50,000; Withdrawals in a month = ?10,000. No foreign remittances allowed.
5. The Central KYC Records Registry (CKYCR) is managed by:
Explanation:
The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) manages the CKYCR to reduce the burden of producing KYC documents every time a customer opens a new relationship with a financial entity.
6. Foreign students studying in India can open an NRO account. What is the monthly withdrawal cap imposed on such accounts before full KYC verification?
?50,000
?10,000
No limit
USD 1,000
Explanation:
For foreign students, pending verification of local address, the account is operated with a condition that withdrawal should not exceed ?50,000 per month and total credits should not exceed ?1 Lakh in the financial year.
7. Which section of the Unlawful Activities (Prevention) Act (UAPA) is relevant for banks regarding freezing of assets of designated terrorists?
Section 45
Section 3
Section 13
Section 51A
Explanation:
Section 51A of UAPA empowers the Central Government to freeze, seize or attach funds and other financial assets or economic resources held by, on behalf of, or at the direction of any individual or entity listed as a terrorist.
8. Under the "Combating of Financing of Terrorism" (CFT) guidelines, banks must screen their customer database against the list of designated individuals/entities circulated by:
Reserve Bank of India (RBI) based on UN Security Council Resolutions.
Local Police.
SEBI.
Central Bureau of Investigation (CBI).
Explanation:
Banks must ensure they do not have any accounts in the names of individuals/entities appearing in the lists of terrorists approved by the UN Security Council (e.g., Al-Qaida Sanctions List), as circulated by the RBI.
9. Records of the identity of clients (KYC documents) must be maintained for a period of ____ after the business relationship has ended.
5 Years
8 Years
2 Years
10 Years
Explanation:
PMLA rules mandate that identification records (KYC) must be preserved for 5 years from the date of cessation of the relationship with the client.