KYCAML · KYC_AML · Chapter 6

Training and Awareness

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for KYC, AML and CFT — KYC, AML and CFT.

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Q

What happens when frontline employees mishandle customer interactions in KYC/AML?

A

Even sophisticated systems collapse; failures at ground level nullify entire compliance framework.

Q

Who bears dual penal exposure under PMLA, 2002?

A

Both the bank as reporting entity AND individual employees handling the breach face penalties.

Q

What is the role of the Designated Director in KYC/AML compliance?

A

Senior-most accountable executive; personally responsible for bank fulfilling PMLA obligations.

Q

Why must KYC/AML staff awareness be continuous?

A

Regulatory landscape evolves constantly; latest RBI Master Direction amended June 12, 2025.

Q

Name five pillars of structured training framework for KYC/AML.

A

Skill development, programmes for all levels, Board/Senior Mgmt coverage, differentiated programmes, training at multiple career stages.

Q

What differentiation exists in training for frontline vs. compliance staff?

A

Frontline: transaction-spotting skills. Compliance: typology depth. New-customer staff: CDD mastery.

Q

How often must AML/CFT-facing staff receive refresher training?

A

Once every two to three years, as ML/TF modalities evolve continuously.

Q

What are the two logical buckets of training content scope?

A

General areas (common to all, varied in depth) and Differential areas (role-specific).

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