Test Your NISM IFSCA 01: Anti Money Laundering and Counter Terrorist Financing Certification in the IFSC Knowledge in 5 Minutes

1. How often should a low-risk customer generally undergo periodic KYC updation under the IFSCA (AML, CFT and KYC) Guidelines, 2022?

A. Every 5 years B. Every 3 years C. Every 2 years D. Every 10 years

2. Which group must be barred by correspondent banks from using their accounts, as per Regulated Entity rules?

A. Retail customers B. Shell Financial Institutions C. Listed companies D. Government entities

3. What specific identification is provided to a client by the Central KYC Records Registry?

A. KYC Identifier B. Customer Reference Number C. Unique Client Code D. Registry Number

4. What is the primary purpose of "cycling" in cryptocurrency, which involves repeated buying and selling of assets?

A. Integration B. Layering C. Investment D. Placement

5. To whom must the risk-based approach be communicated within a company, starting from Senior Management?

A. External vendors B. Only front-line staff C. The rest of the organization D. Only compliance staff

6. At which stage should a company understand and document the intended nature of a business relationship with a client?

A. Only for high-risk customers B. Account closure C. Only for PEPs D. CDD process

7. Who is responsible for ensuring the secrecy of Suspicious Transaction Reports (STRs) sent to the FIU-IND?

A. Only external auditors B. Only the Principal Officer C. The Regulated Entity and its employees D. Only Senior Management

8. Which legislation regulates the prevention of proliferation financing in India?

A. PMLA B. UAPA C. FEMA D. WMDA

9. How do regulations define a "Wire Transfer"?

A. Exchange of physical cheques between banks. B. Any electronic transaction through a financial institution to make funds available to a beneficiary. C. Inter-bank loans restricted to the Government. D. Physical delivery of cash across borders.

10. What is the financial limit for occasional transactions that requires a reporting entity to verify a client's identity?

A. Rs. 50,000 or more B. Rs. 25,000 or more C. Rs. 10,000 or more D. Rs. 1,00,000 or more