Sample Questions

NISM-Series-24: AML and CFT Provisions in Securities Markets Mock Tests — 5 random MCQs with answers & explanations

← Back to NISM-Series-24: AML and CFT Provisions in Securities Markets Mock Tests

These 5 questions are randomly selected (standard MCQs only, not case-based).

Q1 What does Rule 3A require reporting entities to put in place?

  • A. RBI approval for large payments
  • B. Group-level AML compliance policies Correct Answer
  • C. A five-year archive of statements
  • D. SEBI approval for every service
Explanation:
Group-wide controls must be implemented for AML compliance.

Marks: 1

Q2 Which NDPS Act violation is listed as a scheduled offence?

  • A. Selling certain medicines without licence
  • B. Unauthorised holding of pharmaceutical goods
  • C. Contravention involving poppy straw Correct Answer
  • D. Improper storage of medical supplies
Explanation:
Offences relating to poppy straw fall under scheduled offences.

Marks: 1

Q3 Who oversees compliance with the Act and addresses client complaints?

  • A. The national treasury ministry
  • B. The firm’s director
  • C. The compliance officer Correct Answer
  • D. The central banking authority
Explanation:
Compliance officers manage adherence and handle grievances.

Marks: 1

Q4 Which of the following is treated as a “reporting entity” under AML law?

  • A. Any importer or exporter
  • B. Banks, financial institutions, and notified businesses Correct Answer
  • C. Real estate builders
  • D. Independent retail traders
Explanation:
PMLA recognises banks and specified financial institutions as reporting entities.

Marks: 1

Q5 Which of the following details must the authorized officer check and verify during the digital KYC process?

  • A. Client's social media profiles
  • B. Information in the picture of the document matches information entered in CAF Correct Answer
  • C. Client's credit score
  • D. Client's employment history
Explanation:
The authorized officer must check and verify that the information available in the document picture matches the information entered in the CAF.

Marks: 1

Start Mock Tests →

Explore More Mock Tests

Practice structured mock tests designed exactly like real NISM exams.

Browse All Subjects Start Free Test

Free account · No payment needed for Test 1

Create a free PassNISM account

Continue with Google to start a free NISM mock test (Test 1) for this subject, save scores, and compare attempts.

Continue with Google