IIBF AML KYC Mock Test 2026: 15 Free Practice Questions + Answer Key & Study
Quick answer: Updated for the September 2026 exam cycle, this free AML KYC mock test gives you 15 exam-pattern questions. An instant answer key. And a complete study guide for the IIBF AML/KYC certification.
Set a 15-minute timer. Attempt all questions honestly, then check your score below. Use it as your final-revision tool before exam day.
IIBF AML KYC Mock Test 2026: 15 Free Practice Questions With Answer Key
Preparing for the IIBF AML/KYC certification exam. Want a reliable way to test yourself? This AML KYC mock test is built exactly for that. It mirrors the real exam pattern so you can find your weak spots before they cost you marks.
Anti-Money Laundering (AML). Know Your Customer (KYC) is one of the most scoring certifications offered by the Indian Institute of Banking &. Finance (IIBF).
The concepts are logical. The syllabus is finite. And a focused revision plan can take you across the line comfortably.
Below you will find the practice questions. A full answer key. A quick-facts revision table. A smart study strategy, common mistakes to avoid, and a detailed FAQ. Let us begin.
Key takeaways from this guide:
- A timed, 15-question AML KYC mock test with an instant answer key.
- The four pillars of KYC: Customer Acceptance Policy. Customer Identification Procedure, Monitoring of Transactions, and Risk Management.
- The three stages of money laundering — placement, layering, and integration.
- A quick-revision facts table plus the most common exam mistakes.
Why the IIBF AML/KYC Certification Matters in 2026
Money laundering and terror financing are global threats. Banks sit on the front line of defence. That is why every banker is expected to understand AML. KYC norms inside out.
The IIBF AML/KYC certification validates this knowledge. It is widely recognised across public-sector banks, private banks, and NBFCs. For many institutions. Clearing it is linked to compliance roles and internal promotions.
Beyond the certificate, the learning is practical. You will understand how suspicious transactions are spotted. How customer risk is graded, and how reporting obligations work. This is real, on-the-job knowledge — not just exam theory.
Who Should Take This Exam?
- Bank employees in operations, branch banking, and compliance roles.
- Aspiring bankers who want an edge in interviews and appraisals.
- Finance professionals working with NBFCs, fintechs, and payment companies.
For exam dates. Eligibility. Fees. And the application window. As of September 2026, these continue to follow IIBF’s standard notification cycle — always confirm on the latest official IIBF notification before you register.
AML/KYC Mock Test 2026 — Attempt All 15 Questions
Treat this AML KYC mock test like the real thing. Start a 15-minute timer. Attempt every question without peeking at the answers. And only then scroll to the answer key. Solving honestly is what makes the concepts stick.
Pro tip: Note down every question you guess on, even if you get it right. Those are the topics to revisit in your free guides and full-length mock tests.
| No. | Question |
|---|---|
| 1 | What does CFT stand for under KYC/AML regulations?a) Combating the Financing of Terrorismb) Calculating Financial Terrorismc) Committee on Financial Terrorismd) Commission on Financial Terrorism |
| 2 | The amount beyond. Cash transactions (both receipts. Payments) are to be monitored by commercial banks. As stipulated by the Reserve Bank of India, is __________.a) Rs. 5,00,000 and aboveb) Rs. 8,00,000 and abovec) Rs. 10,00,000 and aboved) There is no such limit |
| 3 | Due diligence is done when an account is opened to enable banks to ensure:a) the identification of the customer at the time of account openingb) correctness of the denominations of notes given by customersc) authenticity of the signatures at the time of account openingd) speeding up the process of opening accounts for new customers |
| 4 | While opening the account of a partnership firm. One of the vital documents to be produced is. Of the following?a) Partners' Memorandum of Understanding (MOU)b) Partnership Deedc) Registration certificate of the partnership firmd) Signatures of all the partners |
| 5 | Cash cannot be accepted for the issue of Demand Drafts / TTs / Rupee TCs from customers for Rs. ______.a) Rs. 50,000 and aboveb) Rs. 75,000 and abovec) Rs. 1,00,000 and aboved) Rs. 1,50,000 and above |
| 6 | The principal AML (Anti-Money Laundering) responsibility of a financial institution is to ensure. Of the following?a) that proper due diligence is done at the time of account openingb) that proper due diligence is done at account opening. That the customer. Their account(s) are properly monitoredc) that the customer. Their account(s) are properly monitoredd) None of the above |
| 7 | What refers to the reinjection of laundered proceeds back into the economy. They re-enter as normal business funds in the financial system?a) Layeringb) Placementc) Integrationd) Smurfing |
| 8 | Under KYC norms. Banks should prepare a profile for?a) each new customer based on the categorization of riskb) each new customer based on the constitutionc) each new customer based on financial statusd) each new customer based on their own funds |
| 9 | One of the possible steps required. Opening an NRI account by a bank branch is. Of the following?a) Authentication or verification of signature by the Indian Embassyb) Verification of signatures made by relatives of NRIs in Indiac) Verification of signature made by friends of NRIs staying abroadd) All of the above |
| 10 | Which of the following is a basic document on the basis of. KYC guidelines have been issued?a) Financial Action Task Force &. Anti-Money Laundering standardsb) USA Patriot Actc) UNO Resolution on the Iraq Ward) None of the above |
| 11 | Correspondent banking is. Of the following?a) the provision of depository services by one bank (the correspondent bank) to another bank (the respondent bank)b) the provision of money market services by one bank to anotherc) the provision of capital market services by one bank to anotherd) the provision of banking services by one bank (the correspondent bank) to another bank (the respondent bank) |
| 12 | Which of the following transaction(s) is/are NOT consistent with a salaried customer's account who is employed in India?a) Frequent deposits of cash in large sums by 3rd partiesb) Deposit of cheques issued by foreign companiesc) High-value transactions routed through the account with high frequencyd) All of the above transactions |
| 13 | The four key elements of the Know Your Customer policy. In the context of FATF recommendations and RBI instructions. Are?a) Customer Acceptance Policy. Customer Identification Procedure. Monitoring of Transactions and Reporting of Transactionsb) Customer Acceptance Policy. Customer Identification Procedure. Monitoring of Transactions and Risk Managementc) Customer Acceptance Policy. Monitoring of Transactions. Reporting of Transactions and Risk Managementd) Customer Acceptance Procedure. Monitoring of High-value Transactions, Customer Identification Policy and Risk Management |
| 14 | Which of the following are unusual activities in respect of customers' accounts?a) Opening of a bank account at a place other than the place of workb) Frequent deposits of large amounts bearing the labels of other banksc) Request for closure of newly opened accounts where high-value transactions are routedd) All of the above activities |
| 15 | Strict adherence to KYC norms is achieved through. Of the following?a) following the guidelines of the statutory authorityb) identification of customers with appropriate documentsc) strict implementation of banking systems &. Procedures while opening accountsd) All of the above |
Finished all 15? Do not scroll further until your timer rings. Now compare your responses with the verified answer key below.
AML KYC Mock Test — Answer Key
Here is the complete answer key for the AML KYC mock test above. Tally your score honestly. Anything above 12/15 means you are in strong shape for the certification.
| Q. No. | Answer | Q. No. | Answer |
|---|---|---|---|
| 1 | a | 9 | a |
| 2 | c | 10 | a |
| 3 | a | 11 | d |
| 4 | b | 12 | d |
| 5 | a | 13 | b |
| 6 | b | 14 | d |
| 7 | c | 15 | d |
| 8 | a | — | — |
Want more practice? You can attempt several free, fully online mock tests on AML/KYC and get instant scoring. The more tests you solve, the sharper your exam temperament becomes.
Core AML/KYC Concepts You Must Know
A mock test is only half the job. To answer confidently, you need the underlying concepts locked in. Here are the high-yield topics that appear again. Again in the AML/KYC exam.
The Three Stages of Money Laundering
Almost every AML exam tests the laundering cycle. Memorise these three stages in order:
- Placement — dirty cash first enters the financial system. Often through deposits or purchases.
- Layering — funds are moved through complex transfers to disguise their origin.
- Integration — laundered money re-enters the economy as seemingly legitimate, normal business funds.
A simple way to remember it: dirty money is placed. Then layered to confuse the trail, then integrated back as clean money.
The Four Pillars of KYC Policy
RBI, following FATF recommendations, built KYC on four key elements. Expect a direct question on these:
- Customer Acceptance Policy (CAP). The rules for who the bank will accept as a customer.
- Customer Identification Procedure (CIP) — verifying identity with valid documents.
- Monitoring of Transactions — keeping an ongoing watch on account activity.
- Risk Management — grading and managing customer risk over time.
Customer Due Diligence (CDD)
Due diligence at account opening exists to correctly identify the customer. It is not about checking note denominations or speeding up onboarding. Banks also build a risk-based profile for each new customer — low. Medium, or high risk.
This is why Question 3. Question 8 in the mock test both point to identification and risk categorisation. Once you grasp the principle, those questions become free marks.
AML/KYC Quick-Facts Revision Table
Use this table for fast, last-minute revision before your exam. Note that thresholds and figures can be revised. Always confirm on the latest official IIBF notification and RBI Master Direction.
| Concept | Key Point to Remember |
|---|---|
| CFT | Combating the Financing of Terrorism |
| Money-laundering stages | Placement → Layering → Integration |
| Four pillars of KYC | CAP, CIP, Monitoring of Transactions, Risk Management |
| Basis of KYC guidelines | FATF & Anti-Money Laundering standards |
| Partnership firm account | Partnership Deed is the vital document |
| Correspondent banking | Banking services by a correspondent bank to a respondent bank |
| Purpose of due diligence | Correct identification of the customer at account opening |
How to Study for the AML/KYC Exam — A 7-Day Plan
Short on time? A focused week is enough if you study smart. Here is a simple plan that pairs concepts with this AML KYC mock test. Other practice sets.
- Day 1-2: Read the syllabus and master KYC norms. CDD, and customer risk categorisation.
- Day 3: Learn the money-laundering stages and the role of FATF. PMLA, and RBI Master Directions.
- Day 4: Cover reporting (STR. CTR), correspondent banking, and account-specific norms (NRI, partnership, company).
- Day 5: Attempt this mock test fully timed, then review every wrong answer.
- Day 6: Solve additional online mock tests and revise weak topics from our free guides.
- Day 7: Final revision using the quick-facts table. Sleep well before exam day.
Smart study tip: Active recall beats passive reading. After each topic, close the book and write down what you remember. Then attempt 5-10 questions immediately. This single habit can lift your score dramatically.
Common Mistakes Candidates Make in the AML/KYC Exam
Most candidates do not fail because the exam is hard. They lose marks to avoidable errors. Watch out for these traps:
- Confusing layering with integration. Integration is the final re-entry of clean-looking funds — not the moving-around stage.
- Ignoring "All of the above" logic. In AML questions about unusual or suspicious activity. Multiple options are often valid together.
- Memorising figures blindly. Thresholds change. Understand the concept and verify exact numbers on the latest official notification.
- Skipping the timed practice. Knowing the answer is not enough — you must answer quickly. Always practise against a clock.
- Reading questions in a hurry. Negative-framed questions ("NOT consistent with") trip up rushers. Read every word.
Frequently Asked Questions
What does CFT stand for in AML/KYC?
CFT stands for Combating the Financing of Terrorism. It works alongside AML to stop funds from reaching terror activities. Is a core theme in the IIBF AML/KYC certification.
What are the three stages of money laundering?
The three stages are placement (introducing dirty money into the system). Layering (disguising its origin through complex transactions). And integration (re-injecting it as legitimate funds).
What are the four pillars of the KYC policy?
The four key elements are Customer Acceptance Policy. Customer Identification Procedure. Monitoring of Transactions. And Risk Management, based on FATF recommendations and RBI instructions.
How many mock tests should I solve before the AML/KYC exam?
Aim for at least 4-5 full-length mock tests. Solving this AML KYC mock test plus our free online mock tests helps you master both the concepts and the timing.
Where can I find the latest AML/KYC exam dates and fees?
Always check the official IIBF website for the current schedule. Eligibility, and fees. Figures and dates can change. So confirm on the latest official IIBF notification before registering.
Final Words — Walk Into Your Exam With Confidence
You now have a complete toolkit: a timed AML KYC mock test. A verified answer key. The core concepts, a revision table, and a focused study plan. That is everything you need for confident, last-minute preparation.
Treat every practice question as a learning opportunity. Review your mistakes, strengthen your weak areas, and trust your preparation. The AML/KYC certification is well within your reach.
Solve sincerely, revise smartly, and give it your best. Wishing you great success in your IIBF AML/KYC exam!
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Free Revision PDFs — One-Liners & True/False
Printable last-minute revision sheets for IIBF AML / KYC: 20 quick-fire one-liners and 20 true/false questions, each with answers & explanations. Free to download and share.
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