AML & KYC – Anti-Money Laundering and Know Your Customer is one of the online certificate examination offered by IIBF (Indian Institute of Banking and Finance). IIBF is conducting this AML & KYC examination in online mode once in Fifteen Days (Fortnightly). Therefore, any Registered and Non registered members can apply for this online examination. Further, The exam dates will be listed in their official website http://www.iibf.org.in/index.asp
What is KYC?
Know Your Customer (KYC) is a process of identifying a customer/client by way of key elements
- Customer Acceptance Policy (CAP)
- Acceptance of customer whose identity is established by way of due diligence based on the risk profile of the customer.
- Customer Identification Process (CIP)
- Identifying the customers by verifying his/her officially valid documents such as Aadhar, PAN, Passport, Driving License, Voters ID Etc.,
- Monitoring of Transactions
- Monitoring of the transactions happening in the Banks/Financial Institutions
- Risk Management
- Classifying the risk such as Low risk, Medium risk and High risk based on the customer profile
What is Anti-Money Laundering (AML)?
Money Laundering is the practice of engaging in a specific financial transaction to conceal the identity, source and destination of money. In other words it is the main operation of underground economy. However, the Government issues guidelines for controlling this money laundering activity.
Three stages of Money laundering are Placement, Layering and Integration
- Placement: Firstly, Placement refers to the process of initial entry of funds derived from any criminal activities.
- Layering: Secondly, layering refers to the sequence of transactions which attempts to obscure the link between the initial entry points of funds.
- Integration: Finally, integration refers the process of returning the funds to the legitimate economy
About AML & KYC Certificate Examination
IIBF will cover all the guidelines of AML & KYC issued by the government. Moreover, the main objective of this certificate examination is to provide advanced knowledge and understanding in AML & KYC standards. And also to develop the professional competence of employees of banks and financial institutions.
- Employees of Banks / NBFCs / Financial Institutions / Insurance Companies etc. are eligible to write the examination
- Minimum marks for pass in the subject is 60 out of 100
- Examination will be conducted in English only
- The duration of the examination will be of 2 hours
- Question Paper will contain 120 objective type multiple choice questions for 100 marks.
- The examination will be held in Online Mode only
- There is no negative marking for wrong answers
(i) Anti Money Laundering Money Laundering – Origin – Definition – Techniques Impact on Banks – Structuring; Integration, Preventive Legislations – International Co-operation – UK; USA; India – Basel Committee – PMLA Objectives – RBI Guidelines – System Adequacy to Combat Money Laundering – Antiterrorism finance – Financial Intelligence Unit (FIU) 3 The Financial Action Task Force (FATF) – IBA Working Group – Software for AML Screening : Money Laundering and Correspondent Banking – Exchange Companies – Foreign Branches
(ii) Know Your Customer – Introduction and overview Customer Profile – KYC Policies – Countries Deficient in KYC Policies, Initiatives by the RBI – Organized Financial Crimes Customer – Definition under the KYC Principles – Transaction Profile – Organizational Structure – Important KYC framework in RBI prescriptions – Operating Guidelines. Introduction of new accounts – Guidelines for Opening Accounts of Companies, Trusts, Firms, Intermediaries etc., Client Accounts opened by Professional Intermediaries – Trust / Nominee or Fiduciary Accounts – Accounts of Politically Exposed Persons (PEPs) Residing Outside India, Accounts of ‘non-face-to-face’ Customers – Qualitative data – Joint accounts – Minor accounts – KYC for existing accounts – KYC for low income group customers. Monitoring Accounts – Customer research – Suspicious transactions
For Members of IIBF
- First attempt Rs.1,000/-
- Subsequent each attempt Rs.1,000/-
For Non-Members of IIBF
- First attempt Rs.1,500/-
- Subsequent each attempt Rs.1,500/-
And plus Taxes as applicable.
Are you searching for the study material? AML & KYC Book is available in all online purchase websites.
Initially, IIBF has developed a courseware to cover the above mentioned syllabus. The courseware (book) for the subject will also be available at outlets of publisher/s. Hence, applicants can make use of the book for preparation. However, as banking and finance fields are dynamic, rules and regulations witness rapid changes. Therefore, the courseware should not be considered as the only source of information for preparing the examinations.
Instead of worrying about study material for the examination, the applicant can always buy study books Anti-Money Laundering and Know Your Customer online anytime.
Do you want to apply for the exam? then, visit IIBF website http://www.iibf.org.in/index.asp
Further, most of the banks/Financial Institutions are offering monetary benefits to their employees who are completing this certification. The certified employees are getting monetary incentives as well as reimbursement of examination fee.