Certified AML/KYC

Compliance Officer
VS-1092
Certified AML/KYC Compliance Officer
www.vskills.in

Certified Certified Certified Certified AML/KYC AML/KYC AML/KYC AML/KYC Compliance Compliance Compliance Compliance Officer Officer Officer Officer
Certificate Code VS Certificate Code VS Certificate Code VS Certificate Code VS- -- -1092 1092 1092 1092
Vskills certification in KYC Kno! Yo"r C"stomer# and Anti Mone$ La"nderin%
Operation& is one of t'e first certifications in t'is area of (ankin% sector) A Vskills Certified
AML/KYC Officer finds emplo$ment in (ankin% and (ankin% ancillar$ firms& sec"rit$ and
a"dit firms& and ot'er small and medi"m enterprises)
*'$ s'o"ld one take t'is certification+ *'$ s'o"ld one take t'is certification+ *'$ s'o"ld one take t'is certification+ *'$ s'o"ld one take t'is certification+
,'e certification is aimed at en'ancin% t'e -"alit$ of compliance !it' t'e directions of ./0
in com(atin% ille%al operations and mo1ement of f"nds t'ro"%' t'e "se of (ankin%
c'annels) KYC and Anti Mone$ La"nderin% operations 'a1e ass"med added importance
o!in% to t'e sec"rit$ risk t'at it poses to t'e co"ntr$& and also to maintain t'e financial
'ealt' of t'e instit"tions)
*'o !ill (enefit from takin% t'is certification+ *'o !ill (enefit from takin% t'is certification+ *'o !ill (enefit from takin% t'is certification+ *'o !ill (enefit from takin% t'is certification+
KYC and Anti Mone$ La"nderin% certification is (ein% increasin%l$ taken ($ a lar%e
n"m(er of !orkin% professionals in (ankin% and finance field) Also& st"dents desiro"s of
enterin% (ankin% and finance sector& find t'is certification as a "sef"l addition to t'eir CV)

,est 2etails3 ,est 2etails3 ,est 2etails3 ,est 2etails3
2"ration3 2"ration3 2"ration3 2"ration3 40 min"tes
5o) of -"estions3 5o) of -"estions3 5o) of -"estions3 5o) of -"estions3 60
Ma7im"m marks3 Ma7im"m marks3 Ma7im"m marks3 Ma7im"m marks3 60& 8assin% marks3 26 609#:
,'ere is no ne%ati1e markin% in t'is mod"le)

;ee Str"ct"re3 ;ee Str"ct"re3 ;ee Str"ct"re3 ;ee Str"ct"re3
.s) 2&600/- 0ncl"des all ta7es#


Certified AML/KYC Compliance Officer
www.vskills.in

,a(le of Content ,a(le of Content ,a(le of Content ,a(le of Content
1) 1) 1) 1) Mone$ La"nderin% Mone$ La"nderin% Mone$ La"nderin% Mone$ La"nderin%
1)1 *'at is Mone$ La"nderin%+
1)2 8re1ention of Mone$ La"nderin% Act 8ML Act#
1)< ,ainted Mone$ or 2irt$ Mone$
1)= ,ransfer of f"nds and !as'in% of >2irt$? Mone$
1)6 @lo(al p'enomenon
2 22 2) ) ) ) Mone$ La"nderin%3 Some Met'ods "sed Mone$ La"nderin%3 Some Met'ods "sed Mone$ La"nderin%3 Some Met'ods "sed Mone$ La"nderin%3 Some Met'ods "sed
2)1 8rocess of Mone$ La"nderin%3 8lacement& La$erin%& 0nte%ration
2)2 Met'ods "sed in Mone$ La"nderin%
2)< So"rces of tainted mone$
2)= Common tec'ni-"es emplo$ed
< << <) ) ) ) Le%islation and international Le%islation and international Le%islation and international Le%islation and international cooperation cooperation cooperation cooperation
<)1 Le%islations in 1ario"s co"ntries a%ainst mone$ la"nderin%
<)2 ;inancial Action ,ask ;orce ;A,;#
<)< Anti Mone$ La"nderin% meas"res in 0ndia
<)= ,ools re-"ired for pre1ention of Mone$ La"nderin%
= == =) ) ) ) .ole of c .ole of c .ole of c .ole of correspondent (ankin% orrespondent (ankin% orrespondent (ankin% orrespondent (ankin%
=)1 0nformation on Correspondent /ank
=)2 Anti mone$ la"nderin% policies of t'e correspondent (ank
6) 6) 6) 6) Kno! Yo"r C"stomer Kno! Yo"r C"stomer Kno! Yo"r C"stomer Kno! Yo"r C"stomer A AA A Bistorical 8erspecti1e Bistorical 8erspecti1e Bistorical 8erspecti1e Bistorical 8erspecti1e
6)1 C"stomer 8rofile
6)2 KYC 8olicies and ./0 initiati1e
6)< Some (asic definitions and KYC ori%ination
6)= ,ransaction 8rofile screenin%
6)6 Or%aniCational Str"ct"re in t'e (ank
4) 4) 4) 4) KYC KYC KYC KYC A AA A Operatin% @"idelines Operatin% @"idelines Operatin% @"idelines Operatin% @"idelines
4)1 C"stomer 0dentification
4)2 Acco"nt openin% process
4)< Acco"nts of Companies A Limited Companies& 8roprietors'ip& 8artners'ips
4)= ,r"sts& fid"ciar$ relations& professional intermediaries
4)6 Doint Acco"nts
4)4 S"%%ested safe%a"rds
4)E F7istin% Acco"nts
4)G 0noperati1e Acco"nts
4)9 Monitorin% of Acco"nts
Certified AML/KYC Compliance Officer
www.vskills.in

E EE E) ) ) ) 0nternal Control and str"ct"re in (anks 0nternal Control and str"ct"re in (anks 0nternal Control and str"ct"re in (anks 0nternal Control and str"ct"re in (anks
E)1 .oles and responsi(ilities of t'e 8rincipal Officer
E)2 .oles and responsi(ilities of t'e staff
E)< .oles and responsi(ilities of 0nternal A"dit and Controls
G GG G) ) ) ) C"stomer .isk Cate%oriCation C.C# C"stomer .isk Cate%oriCation C.C# C"stomer .isk Cate%oriCation C.C# C"stomer .isk Cate%oriCation C.C#
G)1 C"stomer .isk
G)2 5eed for C"stomer .isk Cate%oriCation
G)< C"stomer Acceptance 8olic$ CA8#
G)= C"stomer 0dentification 8roced"res
G)6 C"stomer d"e dili%ence
9 99 9) ) ) ) .eportin% O(li%ations .eportin% O(li%ations .eportin% O(li%ations .eportin% O(li%ations
9)1 Cas' transaction reportin% C,.#
9)2 Co"nterfeit C"rrenc$ .eportin% CC.#
9)< S"spicio"s ,ransaction .eport S,.#
1 11 10 00 0) ) ) ) ,ransaction Monitorin% ,ransaction Monitorin% ,ransaction Monitorin% ,ransaction Monitorin%
10)1 Met'ods of monitorin%
10)2 S"spicio"s transactions
10)< 5ame Screenin% process
10)= *ire ,ransfers
10)6 8reser1ation of records
1 11 11 11 1) ) ) ) Staff and C"stomer A!areness Staff and C"stomer A!areness Staff and C"stomer A!areness Staff and C"stomer A!areness
11)1 ,rainin% met'ods
11)2 Assessments
11)< .ecords of trainin%
11)= 0mportance of creatin% c"stomer a!areness













Certified AML/KYC Compliance Officer
www.vskills.in

Co"rse O"tline Co"rse O"tline Co"rse O"tline Co"rse O"tline

Mone$ La"nderin% Mone$ La"nderin% Mone$ La"nderin% Mone$ La"nderin%3 Some Met'ods Hsed 3 Some Met'ods Hsed 3 Some Met'ods Hsed 3 Some Met'ods Hsed
/riefl$ e7plains t'e comple7 !e( of mone$ la"nderin% operations
Vario"s steps in1ol1ed in mone$ la"nderin% like 8lacement A p'$sicall$ placin%
("lk cas' proceeds& La$erin% A separatin% t'e proceeds of criminal acti1it$ from
t'eir ori%ins& t'ro"%' la$ers of comple7 transactions& 0nte%ration A pro1idin% a
seemin%l$ le%itimate e7planation to t'e ille%al proceeds
Vario"s met'ods of mone$ la"nderin% like creatin% s'ell companies& front
companies& offs'ore (ankin% acco"nts& str"ct"rin% t'e amo"nts& and 'a!ala
transactions
Common so"rces of mone$ la"nderin% like dr"% traffickin%& ta7 e1asion& or%aniCed
crime etc
St"d$in% t'e 1ario"s markets in detail t'at a(sor( mone$ la"nderin% mone$ like
precio"s metals etc
Le%islation and 0nt Le%islation and 0nt Le%islation and 0nt Le%islation and 0nternational Cooperation ernational Cooperation ernational Cooperation ernational Cooperation
Se1eral co"ntries 'a1e come "p !it' strict le%islations to co"nter mone$ la"nderin%
HK 'as come "p !it' 1ario"s le%islations like 2r"% ,raffickin% Offences 199G#&
Criminal D"stice Act 19GG#& Criminal D"stice Consolidation# Scotland# Act 1996#&
8roceeds of Crime Scotland# Act 1996#& Criminal D"stice 0nternational
Cooperation# Act 1990#
HSA 'as consistentl$ come o"t !it' 1ario"s acts & and since 9/11 'as taken
si%nificant steps like HSA 8atriot Act 2001 %i1in% s"(stantial po!ers to la!
enforcin% a%encies to pre1ent cross (order flo! of f"nds t'at look s"spicio"s
/asel 8rinciples 'a1e also addressed fo"r areas t'at tackle mone$ la"nderin% i)e)
c"stomer identification& compliance !it' la!s& cooperation !it' la! enforcin%
a%encies& ad'erence to t'e statement
;inancial Action ,ask ;orce ;A,;# !as esta(lis'ed ($ @-E and 'as come "p !it'
recommendations to 'elp "nco1er mone$ la"nderin% tec'ni-"es& to introd"ce
co"nter manners& and to 'armoniCe anti mone$ la"nderin% policies at an
international le1el
0n 0ndia& ,'e 8re1ention of Mone$ La"nderin% Act 2002# addresses t'e pro(lem
of mone$ la"nderin% in conI"nctions !it' ot'er la!s in e7istence
./0 'as also come o"t !it' certain %"idelines for (anks and financial instit"tions to
pre1ent mone$ la"nderin%
,ools are re-"ired to st"d$ t'e comple7 transactions and %ood soft!are packa%es
are needed alon% !it' 'i%' -"alit$ '"man reso"rce
.ole of Correspondent /ankin% .ole of Correspondent /ankin% .ole of Correspondent /ankin% .ole of Correspondent /ankin%
0mportance of properl$ e7aminin% t'e correspondent (ank !it' !'ic' transactions
are 'appenin%
Certified AML/KYC Compliance Officer
www.vskills.in

@at'erin% all important information a(o"t t'e correspondent (ank like ot'er
(ankJs mana%ement& maIor ("siness acti1ities& le1el of KYC and AML norms& etc
(efore e7tendin% correspondent facilities to t'e (ank

Kno! Yo"r C"stomer3 Bistorical 8ers Kno! Yo"r C"stomer3 Bistorical 8ers Kno! Yo"r C"stomer3 Bistorical 8ers Kno! Yo"r C"stomer3 Bistorical 8erspecti1e pecti1e pecti1e pecti1e
0mportance of KYC acti1ities and appreciatin% t'e 1al"e of KYC processes in
ens"rin% t'at t'e (ankin% operations are safe and clean to 'elp clients and (ank
personnel to cond"ct ("siness& !it' comfort and confidence
C"stomer 8rofile and !'at is t'e set of important information t'at needs to (e
collected
Hnderstandin% t'e %lo(al case and co"ntries t'at are deficient in KYC norms
0nitiati1es taken ($ t'e ./0 and t'eir impact in t'e (ankin% ("siness) ,'e ./0Js
approac' 'as (een c'iefl$ to pre1ent (anks from (ein% "sed ($ criminal elements
to la"nder mone$ and to 'elp (anks kno! t'eir c"stomers and t'eir financial
transactions (etter
Some of t'e KYC 8olicies laid do!n ($ ./0 incl"de C"stomer Acceptance 8olic$
CA8#& C"stomer 0dentification 8rocess& Monitorin% of C"stomer ,ransactions and
.isk Mana%ement
./0 also s"%%ests close monitorin% of transactions like arc'i1al of profiles& scr"tin$
of "n"s"al transactions& a"dit and compliance f"nctions& reportin% and trainin%)

KYC3 Operatin% @"idelines KYC3 Operatin% @"idelines KYC3 Operatin% @"idelines KYC3 Operatin% @"idelines
Vario"s %"idelines related to c"stomer identification in openin% of acco"nts&
monitorin% c"stomer transactions& risk mana%ement and ot'er matters related to
KYC standards)
@eneral operatin% %"idelines for c"stomer identification in openin% of acco"nts as
in t'e case of indi1id"als& companies& partners'ips& proprietors'ips& tr"sts and
fo"ndations
Concept of an introd"cer and !'o can (e an introd"cer and client acco"nts
opened ($ professional intermediaries
0nternal Control and Str"ct"re in (ank 0nternal Control and Str"ct"re in (ank 0nternal Control and Str"ct"re in (ank 0nternal Control and Str"ct"re in (ank
0nternal control in terms of c"stomer researc'& monitorin% of cas' transactions&
monitorin% remittances& and t'e parameters "sed for c"stomer identification
C"stomer researc' ma$ in1ol1e desk researc'& disc"ssions !it' c"stomers& periodic
calls to c"stomers etc
.esearc' on c"stomer ma$ f"rt'er (e e7tended "sin% soft!ares of t'e (ank)
0nternal %"idelines for ne! acco"nts& cas' transactions& lar%e 1al"e transfer of f"nds&
monitorin% remittances
5.0 Acco"nts (ecome important in t'e li%'t of ;FMA& and KYC s'o"ld (e
proper
Certified AML/KYC Compliance Officer
www.vskills.in

0dentification parameters need to (e esta(lis'ed like transactions not consistent
!it' c"stomerJs "s"al ("siness& incomplete/non disclos"re of data ($ c"stomer&
"n"s"al acti1it$& s"spicio"s f"nd transfer acti1it$
C'eck on (ank emplo$ees and t'eir lifest$le& emplo$ee discipline and
confidentialit$ of internal control doc"ments
.oles and responsi(ilities of /oard of 2irectors and senior mana%ement
Appointment of 8rincipal officer alon% !it' definin% t'e roles and responsi(ilities&
and form"lation of appropriate proced"res to pre1ent Mone$ La"nderin%
.oles and responsi(ilities of t'e staff and internal a"dit/ internal control
C"stomer .isk Cate%oriCation C.C# C"stomer .isk Cate%oriCation C.C# C"stomer .isk Cate%oriCation C.C# C"stomer .isk Cate%oriCation C.C#
Meanin% of C"stomer risk& and classification of c"stomers in 1ario"s ("ckets of
risk) Vario"s selection of parameters for risk cate%oriCation& determinin% t'e risk
ratin% met'odolo%$& decidin% on t$pe of classification& "se of 1ario"s soft !ares for
risk cate%oriCation& and periodic re1ie! of C.C
.eportin% O(li%ations .eportin% O(li%ations .eportin% O(li%ations .eportin% O(li%ations
Hnder 8MLA Act& 2002& certain o(li%ations !ere cast on (ankin% companies !it'
re%ards to reportin% of certain transactions)
/anks are re-"ired to make reports of t'e follo!in% t$pes 3 Cas' ,ransaction
.eportin% C,.#& Co"nterfeit C"rrenc$ .eportin% CC.#& S"spicio"s ,ransaction
.eportin% S,.#

,ransacti ,ransacti ,ransacti ,ransaction Monitorin% on Monitorin% on Monitorin% on Monitorin%
,ransaction Monitorin% is critical to AML/KYC efforts) Vario"s met'ods of
monitorin% are st"died like o(ser1ation& anal$sis of e7ception reports& AML
soft!are& lookin% at s"spicio"s transactions
."les for transaction monitorin% and c'allen%es for transaction monitorin%
0mportance of soft!are for transaction monitorin% and feat"res a1aila(le for t'e
soft!are
Scope and p"rpose of name screenin% and ne%ati1e lists
Staff and C"stomer A!areness Staff and C"stomer A!areness Staff and C"stomer A!areness Staff and C"stomer A!areness
Creatin% staff a!areness of AML/KYC and allocatin% responsi(ilit$ to top
mana%ement& definin% roles and responsi(ilities and o(li%ations of staff
5eed for de1elopment appropriate trainin% met'ods and "sin% re%"lar assessments
to %a"%e performance
Maintenance of re%"lar records of trainin% and assessment and !'$ is it important
to create c"stomer a!areness on AML



Certified AML/KYC Compliance Officer
www.vskills.in

Sample K"estions Sample K"estions Sample K"estions Sample K"estions

1) 1) 1) 1) Mone$ La"nderin% refers to Mone$ La"nderin% refers to Mone$ La"nderin% refers to Mone$ La"nderin% refers to LLLLLLLLLLLL) LLLLLLLLLLLL) LLLLLLLLLLLL) LLLLLLLLLLLL)
A) ,ansfer of assets/cas' from one acco"nt to anot'er
/) Con1ersion of ille%al mone$ t'ro"%' (ankin% c'annels
C) Con1ersion of cas' into %old for 'oardin%
2) Con1ersion of assets into cas' to a1oid income ta7
2) 2) 2) 2) 0n case of societies& t'e important doc"ment to (e 1erified is 0n case of societies& t'e important doc"ment to (e 1erified is 0n case of societies& t'e important doc"ment to (e 1erified is 0n case of societies& t'e important doc"ment to (e 1erified is LLLLLLLLLLLL)
A) Cop$ of ($e la!s
/) Certificate %i1en ($ .OC
C) Certificate %i1en ($ t'e Local A"t'orities
2) 5o doc"ment is to (e 1erified in case of societies& as societies are e7empted ($ .e%istrar
<) <) <) <) 8A5 8ermanent Acco"nt 5"m(er# is comp"lsor$ for ;i7ed 2eposits& 8A5 8ermanent Acco"nt 5"m(er# is comp"lsor$ for ;i7ed 2eposits& 8A5 8ermanent Acco"nt 5"m(er# is comp"lsor$ for ;i7ed 2eposits& 8A5 8ermanent Acco"nt 5"m(er# is comp"lsor$ for ;i7ed 2eposits&
.emittances like 22s/,,s/.,Cs& etc .emittances like 22s/,,s/.,Cs& etc .emittances like 22s/,,s/.,Cs& etc .emittances like 22s/,,s/.,Cs& etc LLLLLLLLLLLL) LLLLLLLLLLLL) LLLLLLLLLLLL) LLLLLLLLLLLL)
A) if t'e amo"nt e7ceeds .s)10&000
/) if t'e amo"nt e7ceeds .s)26&000
C) if t'e amo"nt e7ceeds .s 60&000
2) no s"c' limit is fi7ed ($ income ta7 a"t'orities
=) =) =) =) 2ormant/ in operati1e acco"nt means 2ormant/ in operati1e acco"nt means 2ormant/ in operati1e acco"nt means 2ormant/ in operati1e acco"nt means LLLLLLLLLLLL) LLLLLLLLLLLL) LLLLLLLLLLLL) LLLLLLLLLLLL)
A) 5o de(its/credits in acco"nt for a certain period
/) 2ead Acco"nt !it'o"t an$ operation for lon%
C) 5o de(it entries& ("t certain credit entries for a certain period
2) ;i7ed asset acco"nt of t'e (ank
6) 6) 6) 6) *'ile openin% an acco"nt of a 8"(lic Limited compan$& *'ile openin% an acco"nt of a 8"(lic Limited compan$& *'ile openin% an acco"nt of a 8"(lic Limited compan$& *'ile openin% an acco"nt of a 8"(lic Limited compan$& !'ic' of t'e follo!in% !'ic' of t'e follo!in% !'ic' of t'e follo!in% !'ic' of t'e follo!in%
is a m"st is a m"st is a m"st is a m"st+ + + +
A) 0ntrod"ction ($ a c"stomer kno!n to t'e (anker
/) Certificate of incorporation/Certificate of commencement of ("siness
C) 0ntrod"ction ($ .OC
2) 5one of t'e a(o1e
Ans!er3 1 /#& 2 Ans!er3 1 /#& 2 Ans!er3 1 /#& 2 Ans!er3 1 /#& 2 A AA A#& < #& < #& < #& < C CC C#& = #& = #& = #& = A AA A#& 6 #& 6 #& 6 #& 6 / // /# ## #