Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q8: Which of the following circumstances constitute a "Suspicious Transaction"?

It gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the Act.




It appears to be made in circumstances of unusual or unjustified complexity.




It appears to have no economic rationale or bona fide purpose.




It gives rise to a reasonable ground of suspicion that it may involve financing of terrorism.
A
1 and 4 only
B
2 and 3 only
C
1, 2 and 4 only
D
All of the above
✅ Correct Answer: D
A 'Suspicious transaction' includes transactions that (a) involve proceeds of an offence, (b) appear to have unusual or unjustified complexity, (c) have no economic rationale or bona fide purpose, or (d) involve financing of activities relating to terrorism.
Defining suspicious transactions is core to the IIBF AML KYC Exam 2026.