JAIIB · PPB

A AML KYC GUIDELINES

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Q

What does AML stand for in the context of banking regulations?

A

AML stands for Anti-Money Laundering, referring to laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.

Q

What is the full form of PMLA in Indian banking regulation?

A

Prevention of Money Laundering Act, enacted in 2002.

Q

What does KYC stand for and why is it mandatory for banks?

A

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.

Q

Which RBI circular mandates Know Your Customer norms for all Indian banks?

A

RBI Master Direction on KYC, updated periodically.

Q

Which act in India primarily governs anti-money laundering provisions?

A

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).

Q

What minimum information must banks collect under the Customer Identification Procedure?

A

Name, address, identity proof, and photograph.

Q

What is the role of the Financial Intelligence Unit-India (FIU-IND)?

A

FIU-IND is the central national agency responsible for receiving, processing, analysing, and disseminating information related to suspect financial transactions to law enforcement agencies.

Q

What is the maximum cash transaction amount that triggers a CTR filing obligation?

A

Transactions exceeding Rs. 10 lakh in a single day.

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