IIBF AML/KYC Recollected Questions 2026: Topic-Wise Memory-Based Questions From Past Exams

IIBF AML KYC recollected questions are the single best preview you can get before sitting the real exam. They are memory-based questions that candidates reconstruct right after writing the Anti-Money Laundering. Know Your Customer (AML/KYC) certification paper of IIBF.

Study them and you stop guessing what the examiner asks. You start practising the exact topics. Phrasing, and case-study style that actually appear.

This 2026 guide compiles those recalled questions topic by topic. It adds a high-yield weightage table. A focused study plan, the most common mistakes, and a detailed FAQ. Whether you are attempting the exam this cycle or the next. This is your shortcut to walking into the hall already familiar with the pattern.

What Are IIBF AML/KYC Recollected Questions?

Recollected questions (also called memory-based or remembered questions) are questions that candidates write down from memory after their exam. IIBF never releases the actual paper. So these reconstructions become the most reliable mirror of what the AML/KYC exam genuinely tests.

They are not a leaked question bank. They are a pattern map. The exact wording or the specific case data may change.

But the underlying concepts repeat session after session. That repetition is the gold. Once you recognise the shape of a question.

You answer it faster and with more confidence under pressure.

Why AML/KYC Specifically Needs This Approach

The AML/KYC paper blends law, regulation, and applied judgement. You can memorise the definition of money laundering. Still lose marks.

You have never practised an IIBF-style case study on structuring or funnel accounts. Recollected questions close that gap between knowing a concept. Applying it to a scenario.

Why Recollected Questions Matter for Your AML/KYC Score

The AML/KYC certification is one of the most valued IIBF qualifications for bankers handling compliance. Account opening, and transaction monitoring. Re-attempts cost time and fees. Smart preparation means studying what is actually asked. Not everything the syllabus could theoretically cover.

Here is what recollected questions give you that a plain syllabus list cannot:

• Real difficulty calibration. You learn whether a topic is asked at a basic. Definitional level or as an applied case study.
• Topic priority. You discover which areas (like PMLA and FATF) carry the heaviest weight.
• Phrasing familiarity — IIBF wording is specific; seeing it early removes exam-day confusion.
• Case-study readiness. You walk in already used to scenario-based questions instead of meeting them cold.

AML/KYC High-Yield Topic Weightage (From Recalled Patterns)

The table below maps the topics that recur most across past sessions. Based on the count of recalled questions and case studies. Treat it as a priority order for revision. Always confirm the exact syllabus structure. Marking on the latest official IIBF notification.

Topic-Wise IIBF AML/KYC Recollected Questions

Below are the memory-recalled questions grouped by topic. Mirroring the AML/KYC syllabus. Use them as a self-test: cover any notes you have. Attempt each question aloud, then review the concept in your study material.

1. Money Laundering: Meaning, Stages and Cycle

• What is the meaning of money laundering?
• What are the three stages of the basic money laundering cycle? (Placement, Layering, Integration)
• What are the stages involved in the process of money laundering? (recalled 4 times)
• Case studies on placement and layering (2 case studies and 1 direct question recalled).
• What are the five major factors that impact ML/TF (money laundering. Terrorism financing)?
• What is the difference between ML. TF (money laundering and terrorism financing)?
• What is the social impact of money laundering and terrorism financing?

2. PMLA and Its Latest Amendments

• The latest amendments in PMLA (recalled as 5 questions in one session. And again as 5 questions in another).
• What are the punitive actions for non-compliance under PMLA?
• What does a Reporting Entity mean under PMLA?
• Who is authorised to take up prosecution under PMLA? (The Directorate of Enforcement, ED)
• What is the maximum penalty that can be levied for non-compliance with KYC? (recalled answer: Rs. 1,00,000)
• Which legislation supports AML measures in India?

3. FATF: Recommendations, Evaluations and Public Statement

• For what purpose is FATF (Financial Action Task Force) set up?
• India is a member of which group? (FATF, among others)
• Comprehensive questions on FATF recommendations (recalled as 4 questions).
• What are the FATF recommendations relating to PEP. NPO, correspondent banking, and money/value transfer services? (4 questions)
• FATF 4th-round mutual evaluation (3 questions).
• What is the FATF public statement?
• Which are the countries identified by FATF? (3 questions)
• What are the FATF Rules?
• For which DNFBPs (Designated Non-Financial Businesses and Professions) is CDD not required. As defined by FATF?

4. International Bodies: Wolfsberg, Egmont, BCBS and Vienna Convention

• What is the difference between FATF. The Egmont Group. The Wolfsberg Group and BCBS (Basel Committee on Banking Supervision)?
• Which bank is not a member of the Wolfsberg Group? (recalled twice)
• What is the Egmont Group?
• What is the procedure of CDD. The account-opening guidelines per the BCBS paper?
• What is the main feature of the Vienna Convention?
• What is the FIU-IND role in providing technical assistance to other countries?

5. Reporting: STR, CTR, CCR and FIU-IND

• What is a Suspicious Transaction Report (STR)? (recalled as 1 case study and 2 questions)
• Who decides to file an STR?
• What is the time limit for STR filing and submission to FIU-IND? (recalled multiple times)
• What is the STR typology?
• What is the frequency of submission of Counterfeit Currency Reports (CCR)? (recalled answer: monthly)
• What is the time limit for filing a CTR (Currency Transaction Report)?
• Which report does not have a ceiling limit?

6. Customer Due Diligence (CDD), EDD and Beneficial Owner

• What is the minimum requirement to determine a beneficial owner in a company. A proprietary firm, and a trust? (recalled as 3 questions)
• What does a specific / specified beneficial owner mean?
• What is the CDD process for juridical persons and their firms? (2 questions)
• What is CDD for PEPs (Politically Exposed Persons)?
• What is a multiple-tier account of a PEP?
• What does Enhanced Due Diligence (EDD) mean?
• What is Simplified Due Diligence (SDD)?
• What are the stages of CIP (Customer Identification Procedure)?
• What is the limit for CDD in the case of cross-border transactions?
• What is the transparency requirement for covering payment messages in cross-border wire transfers?

7. Suspicious Account Typologies and Techniques

• What are funnel accounts? (recalled as a case study and again as 2 questions)
• Case study on structuring (smurfing) — 1 question recalled.
• Case study on a back-to-back loan.
• What are connected accounts?
• What do you mean by hawala? (1 question)
• What is a wire transfer and a cross-border wire transfer?
• What do you mean by a shell bank?
• What is staff callousness in the AML context?

8. Terrorism Financing (TF), UAPA and Freezing of Assets

• What is the difference between ML and TF?
• What is the easy method for terrorist financing?
• Case study on terrorism financing through a trust.
• Who is the authority for prosecution in a case of terrorism financing?
• Who is authorised to seize property under UAPA? (the NIA)
• Who has the power to freeze assets?
• What is the time limit for freezing accounts?

9. KYC Policy: Elements, Approval and Updation

• What are the key elements of a KYC policy? (recalled multiple times)
• Who approves the KYC policy? (The Board of Directors)
• What is the updation of the KYC policy. The time limit for KYC updation?
• Who is the Principal Officer, and who designates the Designated Director?
• What is the responsibility of the Board of Directors. The Principal Officer?
• What is the periodicity of risk categorisation?
• What is the period of retention of transaction records?
• Within how many days must records be sent to the Central KYC Registry (CKYCR)?
• What is KYC-AML interconnectedness?

10. Account Types, OVDs and Documentation

• What do you mean by a small account? (recalled twice)
• What is the holding limit for accounts opened through OTP-based e-KYC?
• If an OVD (Officially Valid Document) does not contain an address. Which utility bill can be used instead?
• What do you mean by a utility bill?
• What is a foreign student account?
• What is a proprietary firm, and who are juridical persons?
• Case study: what should be the KYC risk category for a salaried person receiving inward cross-border remittances?
• Which countries need prior permission to open accounts?

11. International AML Laws and Sanctions

• What is the US Sanctions list?
• What are the laws in the UK related to anti-money laundering? (recalled as 2 questions)
• Which Acts are related to Australia?
• What are the international AML Acts and Rules?
• What is the Negotiable Instruments Act in the AML context?
• Who are the intermediaries and non-intermediaries in the options market?

12. Emerging Risks and Miscellaneous

• What are the risks in money laundering relating to new products. New technology?
• What are the risks involved in third-party business?
• What does a "person" mean or include under the relevant law?
• Are there questions related to trusts? (Yes — both definitional and case-study based.)
• What is the purpose of FAQs issued by regulators?

For every exact limit. Threshold. Timeline.

And document list above. Always confirm the current value on the latest official IIBF notification. Source material.

As these figures are revised periodically.

The Money Laundering Cycle Explained (Most-Tested Concept)

If you master one concept for this exam. Make it the money laundering cycle. Almost every case study tests your ability to identify a stage from a real-world scenario. Here is the breakdown the examiner expects:

• Placement — introducing illicit cash into the financial system. Example signals: structuring deposits below reporting thresholds. Using funnel accounts, buying instruments with cash.
• Layering — separating proceeds from their source through layers of transactions. Example signals: rapid transfers between connected accounts, back-to-back loans, cross-border wire transfers.
• Integration — returning laundered funds to the economy as legitimate-looking assets. Example signals: investment in property or businesses, loan repayments from laundered funds.

When you read a case study. Ask: where in the cycle does this transaction sit? That single question answers most scenario-based items.

How to Study AML/KYC Recollected Questions (Step-by-Step)

Reading the questions once does little. Use this practical, repeatable method to turn them into marks.

1. First pass — sort by confidence. Attempt every recalled question and tag it green (easy). Yellow (shaky), or red (no idea).
2. Build a definitions sheet. Write one-line definitions for ML. TF. STR. CTR. CCR. CDD. EDD, SDD, beneficial owner, PEP, and shell bank on a single page. Revise it daily.
3. Map the bodies. Make a comparison chart of FATF, Egmont, Wolfsberg, and BCBS. This is a guaranteed scoring area.
4. Drill the case studies. Re-read funnel account. Structuring. Placement. Layering. And TF-through-trust scenarios until you can name the stage. The red flag instantly.
5. Pin down the numbers — carefully. Learn current timelines. Penalties. And thresholds from the latest source material. Not from memory of an old exam.
6. Simulate the exam. Attempt full-length mock tests under timed conditions, then review every wrong answer.
7. Loop the weak topics. Revisit your red-tagged items weekly until they turn green.

A Simple 7-Day Revision Plan

Quick Revision Resources

Pair this question bank with concept clarity. Browse our free guides for chapter-wise AML/KYC notes, and use short drills to keep definitions and timelines fresh between study sessions.

Common Mistakes to Avoid in AML/KYC Prep

Most AML/KYC marks are lost to avoidable errors, not hard concepts. Watch for these:

• Memorising old figures. Penalties, STR/CTR timelines, and thresholds change. Always confirm the current value on the latest official IIBF notification.
• Confusing the international bodies. FATF, Egmont, Wolfsberg, and BCBS each play a different role. Mixing them up is the most common slip.
• Ignoring case studies. A large share of questions are scenario-based. Pure definition revision leaves easy applied marks on the table.
• Treating ML and TF as the same. Money laundering hides criminal proceeds. Terrorism financing funds future acts and can use clean money. The exam tests this difference directly.
• Skipping KYC policy basics. The four elements. Who approves the policy. And the role of the Principal Officer are repeated, easy marks.
• No timed practice. Untimed prep hides your real speed. Use full-length mocks before the exam.

Frequently Asked Questions (FAQ)

Q1. What is the difference between money laundering (ML) and terrorism financing (TF)?

Money laundering is the process of concealing the illegal origin of criminal proceeds. "dirty" money appears legitimate. Terrorism financing is the act of providing or collecting funds to carry out terrorist acts.

The key contrast the exam tests: ML always starts with illicit funds. Whereas TF can be funded by clean, legitimately earned money. Their direction differs too — ML hides the source.

While TF focuses on the destination and use of funds.

Q2. What is a Suspicious Transaction Report (STR) and who decides to file it?

An STR is a report a reporting entity files when a transaction appears unusual. Has no clear economic rationale. Or is suspected to involve the proceeds of crime.

The decision to file is typically taken by the bank's Principal Officer. Based on alerts and internal review. The STR is submitted to FIU-IND (Financial Intelligence Unit-India) within the timeline prescribed by regulation.

Confirm the current timeline on the latest official IIBF notification. As it is revised periodically.

Q3. What are the four key elements of a KYC policy?

The four elements are: (1) Customer Acceptance Policy. (2) Customer Identification Procedure (CIP), (3) Monitoring of Transactions, and (4) Risk Management. The KYC policy is approved by the bank's Board of Directors. This is one of the most frequently recalled questions. So commit all four to memory.

Q4. What is the difference between FATF, the Egmont Group, the Wolfsberg Group and BCBS?

FATF is the global standard-setter that issues AML/CFT recommendations. The Egmont Group is the international network of Financial Intelligence Units. The Wolfsberg Group is an association of global banks that develops AML principles for the banking industry.

BCBS (Basel Committee on Banking Supervision) sets banking supervision standards. Including customer due diligence guidance. Knowing which body does what is a guaranteed scoring opportunity.

Q5. What are funnel accounts and why are they a red flag?

A funnel account is an account into. Deposits are made in one location and withdrawals are made in another. Often quickly and in amounts kept below reporting thresholds.

They are a classic placement. Layering technique. They move value across geographies.

Obscuring the link between depositor and beneficiary. Funnel-account case studies recur in the AML/KYC exam. So learn to spot the pattern.

Conclusion: Turn Recalled Questions Into Real Marks

The IIBF AML KYC recollected questions in this guide span every high-yield area of the exam. From the money laundering cycle and PMLA to FATF. The Wolfsberg.

Egmont and Basel bodies. STR and CTR reporting. CDD and beneficial ownership.

Terrorism financing, and the most-tested case-study typologies like funnel accounts and structuring. Together they show you exactly how IIBF frames its questions.

Now make them count. Build your definitions sheet. Map the international bodies.

Drill the case studies until the stage jumps out at you. And verify every timeline and threshold against current source material. Consistent.

Pattern-aware practice is what separates a clear pass from a near miss. Start today. Stay regular.

And walk into the AML/KYC exam already knowing the questions. All the best.

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