Sample Questions

NISM IFSCA 01: Anti Money Laundering and Counter Terrorist Financing Certification in the IFSC — 5 random MCQs with answers & explanations

← Back to NISM IFSCA 01: Anti Money Laundering and Counter Terrorist Financing Certification in the IFSC

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

Q1 To which group does the FIU-IND report directly?

A. Economic Intelligence Council led by the Finance Minister Correct Answer
B. Ministry of Home Affairs
C. Reserve Bank of India
D. Directorate of Enforcement

Explanation:

The FIU-IND is part of the national economic security system and reports to the top finance leadership.

Marks: 1

Q2 Can a Regulated Entity rely on a third party for CDD when the third party is located in a jurisdiction identified by FATF as a high-risk jurisdiction subject to a Call for Action?

A. Yes, without restrictions
B. Yes, if the customer agrees
C. No, such reliance is not permitted under the applicable framework Correct Answer
D. Yes, if the transaction is below ₹10 lakh

Explanation:

The IFSCA framework restricts reliance on third parties located in jurisdictions identified by FATF as High-Risk Jurisdictions subject to a Call for Action. The new version removes the confusing "True (It is NOT permitted)" construction.

Marks: 1

Q3 To whom do the IFSCA anti-money laundering guidelines apply?

A. Only to banks in the IFSC
B. To every Regulated Entity overseen by the IFSCA Correct Answer
C. Only to foreign institutions
D. Only to Indian insurance companies

Explanation:

Every company operating under the IFSCA's license must follow these strict anti-crime rules.

Marks: 1

Q4 Who must give the final approval for the bank's internal policy on periodic KYC updates?

A. Branch manager
B. Governing Body (Board) of the bank Correct Answer
C. Only the Compliance Officer
D. External auditor

Explanation:

The top management or Board must sign off on how and when the bank checks its customers' documents.

Marks: 1

Q5 Why is trade-based money laundering (TBML) difficult to detect?

A. High customs inspection rates
B. Low inspection rates and limited resources Correct Answer
C. Full data sharing between nations
D. Simple transaction types

Explanation:

Because millions of shipments move daily and very few are checked, it is easy for criminals to hide illegal activity in trade.

Marks: 1

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