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

Q81: Consider the following statements regarding the historical origins and international framework of anti-money laundering efforts:

The term "Money Laundering" is historically associated with the US Mafia in the 1920s using cash-intensive businesses like laundromats to mix illegal profits with legitimate earnings.




The United Nations Vienna Convention of 1988 was the first major international instrument to define money laundering, specifically focusing on drug trafficking proceeds.




The Financial Action Task Force (FATF) was established immediately prior to the Vienna Convention to draft its regulations.
A
1 and 2 only
B
2 and 3 only
C
1 and 3 only
D
All of the above
✅ Correct Answer: A
The correct answer is Option A. The concept links to the US Mafia, and the Vienna Convention (1988) was the pioneer treaty.
However, FATF was established later in 1989.
Historical context is often tested in the IIBF AML KYC Exam 2026.