A AML KYC GUIDELINES
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What does AML stand for in the context of banking regulations?
AML stands for Anti-Money Laundering, referring to laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.
What is the full form of PMLA in Indian banking regulation?
Prevention of Money Laundering Act, enacted in 2002.
What does KYC stand for and why is it mandatory for banks?
KYC stands for Know Your Customer. It is mandatory for banks to verify the identity of clients to prevent fraud, money laundering, and terrorist financing.
Which RBI circular mandates Know Your Customer norms for all Indian banks?
RBI Master Direction on KYC, updated periodically.
Which act in India primarily governs anti-money laundering provisions?
The Prevention of Money Laundering Act (PMLA), 2002 is the primary legislation governing AML in India, administered by the Financial Intelligence Unit-India (FIU-IND).
What minimum information must banks collect under the Customer Identification Procedure?
Name, address, identity proof, and photograph.
What is the role of the Financial Intelligence Unit-India (FIU-IND)?
FIU-IND is the central national agency responsible for receiving, processing, analysing, and disseminating information related to suspect financial transactions to law enforcement agencies.
What is the maximum cash transaction amount that triggers a CTR filing obligation?
Transactions exceeding Rs. 10 lakh in a single day.
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