The IIBF AML KYC Exam 2026 is the cornerstone topic for aspirants. In this guide, we cover the 105 most important questions. This Positive mock test is specifically designed for IIBF Certificate Exam to help you master the concepts quickly.
Why This IIBF AML KYC Exam 2026 Test Matters?
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✅ General Practice
Q51During periodic updation of KYC for an individual customer, if there is a change only in the address details, the bank must verify the declared address through "positive confirmation" within what timeframe?Q52When an account holder who was a minor at the time of account opening becomes a major, the bank is required to obtain fresh photographs and ensure that Customer Due Diligence (CDD) documents are available as per current standards.Q53Regarding the "Due Notices for Periodic Updation of KYC," what is the minimum number of advance intimations and subsequent reminders a bank must send to a customer before the due date and after the due date, respectively?Q54In the context of customers unable to provide PAN or Form No. 60, "temporary ceasing of operations" in relation to an account is defined as:Q55For accounts opened in non-face-to-face mode (subject to Enhanced Due Diligence), the first transaction must necessarily be a credit from an existing KYC-complied bank account of the customer.Q56How are "Politically Exposed Persons" (PEPs) defined for the purpose of the RBI (Commercial Banks – KYC) Directions, 2025?Q57Regarding the "Simplified norms for Self Help Groups (SHGs)," which of the following statements are correct?Q58When a bank opens a Non-Resident Ordinary (NRO) account for a foreign student pending address verification, what is the cap on the aggregate withdrawal from such an account during the 30-day period?Q59Regarding the maintenance and preservation of records, which of the following timeframes are correct?Q60Banks are required to register the details of customers who are Non-Profit Organisations (NPOs) on which specific portal?Q61When furnishing information to the Director, FIU-IND, a delay of each day in not reporting a transaction constitutes a separate violation.Q62Regarding Suspicious Transaction Reports (STRs), banks are explicitly prohibited from taking which of the following actions?Q63Under the "Weapons of Mass Destruction (WMD) and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005," who is designated as the Central Nodal Officer (CNO) for exercising powers under Section 12A?Q64According to the guidelines on Secrecy Obligations, in which of the following circumstances is a bank permitted to disclose customer information?Q65When relying on KYC records retrieved from the Central KYC Records Registry (CKYCR), the bank shall NOT require a customer to submit the same KYC records or additional documents, UNLESS one of the following conditions is met. Which condition allows the bank to ask for fresh documents?Q66When a bank obtains additional or updated information from a customer, within what timeframe must it furnish this updated information to the Central KYC Records Registry (CKYCR)?Q67The provisions of the Reserve Bank of India (Commercial Banks – KYC) Directions, 2025, are intended to be in derogation of (i.e., to override) the provisions of any other laws, rules, or regulations for the time being in force.Q68Regarding the approval process for establishing new "Cross-Border Correspondent Banking Relationships," which of the following statements is correct?Q69Regarding "Money Mules," if it is established that an account opened and operated is that of a Money Mule, but the concerned bank failed to file a Suspicious Transaction Report (STR), what is the specific regulatory consequence?Q70For a domestic wire transfer of less than ₹50,000, where the originator is not an account holder of the ordering bank, what information is sufficient to include, if the full originator information can be made available by other means?Q71All cross-border wire transfers must be accompanied by accurate and meaningful originator information. Which of the following fields are mandatory?Q72What is the maximum validity period for the presentation of cheques, drafts, pay orders, and banker's cheques?Q73When an intermediary bank in a wire transfer chain cannot retain the originator or beneficiary information with a related domestic wire transfer due to technical limitations, how long must it keep the record of the information received from the ordering financial institution?Q74Any remittance of funds by way of demand draft, mail/telegraphic transfer, NEFT/IMPS, or any other mode for a value of …… and above, shall be effected by debit to the customer's account or against cheques, and not against cash payment.Q75Regarding the sale of "Third Party Products" by a bank acting as an agent, which of the following compliance measures are mandatory?Q76To minimize the risk of "Money Mules," banks must strictly adhere to instructions on opening accounts. If an account is established to be a Money Mule account, but the bank failed to file a Suspicious Transaction Report (STR), what is the consequence?Q77Since September 15, 2018, what specific detail must a bank incorporate on the face of a Demand Draft, Pay Order, or Banker's Cheque?Q78Banks must put in place an adequate screening mechanism as an integral part of their personnel recruitment process. What is this specific policy called?Q79Which of the following statements are correct regarding the definition and nature of Money Laundering under the Prevention of Money Laundering Act (PMLA), 2002?Q80Which of the following statements accurately describe the stages and techniques of the Money Laundering cycle?Q81Consider the following statements regarding the historical origins and international framework of anti-money laundering efforts:Q82Which of the following statements accurately describe the mechanics of Trade-Based Money Laundering (TBML) and its specific techniques?Q83Consider the following money laundering vehicles and techniques. Which of the statements below are correct?Q84Which of the following statements correctly characterize the risks and red flags associated with Money Laundering in the banking sector?Q85Which of the following statements accurately describe the history, structure, and current leadership of the global anti-money laundering framework (FATF and Basel Committee)?Q86Consider the FATF's monitoring mechanisms and the consequences of being listed as a "High Risk" jurisdiction. Which of the following statements are correct?Q87Which of the following statements correctly describe the key provisions and extraterritorial powers of the USA PATRIOT Act (2001) regarding international money laundering?Q88The UK Proceeds of Crime Act (POCA) 2002 establishes a strict regime for reporting money laundering. Which of the following statements regarding this framework are correct?Q89Based on recent Supreme Court judgments (including Vijay Madanlal Choudhary and Pavana Dibbur), which of the following statements correctly interpret the scope and nature of the offence of Money Laundering under the PMLA, 2002?Q90Consider the procedural powers of the Enforcement Directorate (ED) and the constitutional safeguards for the accused as clarified by 2025-2026 jurisprudence. Which of the following statements are correct?Q91Section 45 of the PMLA imposes "Twin Conditions" for the grant of bail. In light of the Delhi High Court ruling (February 2026) and established precedents, which of the following statements accurately describe this legal standard?Q92The Financial Intelligence Unit - India (FIU-IND) plays a central role in the AML architecture. Which of the following statements accurately describe its institutional structure and powers under the PMLA, 2002?Q93Reporting Entities (REs) in India are mandated to file specific reports with the FIU-IND. Which of the following statements regarding these obligations and the definition of REs are correct?Q94Every Reporting Entity must appoint a "Principal Officer" to manage AML compliance. Consider the following operational protocols regarding this role:Q95According to the RBI Master Direction on KYC (updated 2025), which of the following statements correctly describe the documentation standards and verification methods for opening bank accounts?Q96Customer Due Diligence (CDD) involves risk categorization and identifying beneficial ownership. Which of the following statements accurately reflect the current RBI norms?Q97Terrorist Financing (TF) is conceptually distinct from Money Laundering (ML). Which of the following statements accurately describe these distinctions and the international framework governing them?Q98The Unlawful Activities (Prevention) Act, UAPA 1967, acts as India's primary anti-terror legislation. Which of the following statements regarding its offences, bail provisions, and asset freezing procedures are correct?Q99Non-Profit Organizations (NPOs) are considered "High Risk" for terrorist financing. Which of the following statements regarding the global standards (FATF Recommendation 8) and compliance risks are correct?Q100Correspondent Banking relies on specific terminologies and structures to move money globally. Which of the following statements accurately describe these mechanisms?
Frequently Asked Questions
What is the specific difference between “Digital KYC” and “V-CIP”?
V-CIP is a live, face-to-face video interaction with a bank official (treated as physical presence). Digital KYC is merely capturing a live photo with geo-tagging (GPS) without a live interview. V-CIP is a higher standard.
Can a “Small Account” receive foreign remittances if below ₹10,000?
No. Foreign remittances are strictly prohibited in Small Accounts regardless of amount. The customer must complete full KYC to receive foreign funds.
Is the PAN Card considered an OVD for address proof?
No. The PAN Card is an OVD for Identity only. It is NOT accepted as proof of address under the RBI Master Direction because it does not contain address details.
Does the “Travel Rule” apply to Crypto/Virtual Digital Assets?
Yes. Virtual Asset Service Providers (VASPs) must ensure Originator and Beneficiary details “travel” with the crypto transfer. Beneficiary exchanges must also screen wallets against sanction lists.
What constitutes “Tipping Off” under PMLA?
It is a criminal offence where a bank official informs a customer that their transaction is being reported (STR) or investigated. The existence of an STR must be kept strictly confidential.
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