KYC AML CFT NORMS
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 65 rapid-fire Q&A cards.
What does KYC stand for in banking?
KYC stands for Know Your Customer. It is a process by which banks verify the identity and address of their customers before and during account opening.
What is the full form of PMLA in Indian banking?
Prevention of Money Laundering Act, 2002
What is the primary objective of KYC norms?
The primary objective of KYC norms is to prevent banks from being used, intentionally or unintentionally, for money laundering and terrorist financing activities.
Which authority in India issues guidelines on KYC norms to banks?
Reserve Bank of India (RBI)
Which RBI Master Direction governs KYC norms for banks in India?
The RBI Master Direction on Know Your Customer (KYC) Direction, 2016 (updated periodically) governs KYC norms for banks and regulated entities in India.
What is 'placement' in the money laundering process?
First stage where illegal cash is introduced into financial system
What does AML stand for?
AML stands for Anti-Money Laundering. It refers to a set of laws, regulations, and procedures aimed at preventing criminals from disguising illegally obtained funds as legitimate income.
What is 'layering' in the context of money laundering?
Second stage involving complex transactions to disguise illegal funds
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