The advent of modern technology and the digital era globally has opened up new opportunities across all sectors including banking and finance. Banks, by design, have specialized departments for each of their functions. However, with the boom in the digital age and online banking and transfer of funds, banks also require specialized personnel to ensure compliance with Anti-Money Laundering (“AML”) as well as Know Your Customer (“KYC”) standards.
With this above objective in mind, the Indian Institute of Banking and Finance (“IIBF”) introduced the certificate examination in AML & KYC.
|Conducting Body||Indian Institute of Banking and Finance (“IIBF”)|
|Frequency of exam||As notified online by IIBF|
|Mode of examination||Online|
This Blog Includes:
AML KYC Important Dates 2023
The crucial dates for the upcoming AML KYC exam have already been notified, as noted below:
|March 11, 2023||Start of online registration||February 27, 2023|
|Last date for online registration||March 6, 2023|
|March 25, 2023||Start of online registration||March 10, 2023|
|Last date for online registration||March 19, 2023|
Eligibility Criteria for AML KYC Exam
Both members and non-members of the IIBF are eligible to enrol for this examination. Candidates should have completed their 12th standard examination in any discipline or the Business Correspondent/ Business Facilitator exam conducted by IIBF to write this exam.
Registration Process for the AML KYC Exam
The application process is completely online and candidates need to register on IIBF’s website iibf.org.in. During this process, candidates can pick an appropriate date for the examination. Further, during this process, candidates can also register for study material offered by IIBF. Upon successful completion of the registration process, candidates will be able to download their admit card.
AML KYC Exam Fees
The fee schedule for the exam is stated below:-
|Members||INR 1100 per attempt|
|Non-Members||INR 1600 per attempt|
* Exclusive of convenience charges and taxes, as applicable.
Syllabus for AML KYC Exam
The detailed syllabus for the AML KYC Exam is discussed below. However, it is pertinent to note here that the candidates are also expected to be well-prepared for answering questions on the latest developments taking place in the domain of the relevant subjects.
|Anti-Money Laundering||Money Laundering – Origin and Definition
Techniques impact on banks
Structuring, integration and preventive legislation
International co-operation – UK, USA, India-Basel committee
Prevention of Money Laundering Act objectives
Reserve Bank of India guidelines
System Adequacy to combat money laundering
Financial Intelligence Unit
The Financial Action Task Force
Indian Banks’ Association working group
Software for AML screening
Money laundering and correspondent banking
|Know your customer – Introduction and Overview||Customer profile
Countries deficient in KYC policies and initiatives by the RBI
Organized financial crimes customer
Definition under the KYC principles
Important KYC Framework in RBI Prescriptions
Introduction of new accounts
Guidelines or opening accounts of companies, trusts, firms, intermediaries, etc.
Client accounts opened by professional intermediaries
Trust/nominee or fiduciary accounts
Accounts of politically exposed persons residing outside India
Accounts of ‘non-face-to-face’ customers
KYC for existing accounts
KYC for low-income group customers
Exam Pattern for AML KYC Exam
The exam pattern is discussed below:-
|Duration of exam||Two (2) hours|
|Language of exam||English|
|Minimum passing marks||60|
Also Read: City Union Bank Exam
Books for Preparation for AML KYC Exam
The advantage of having a defined syllabus is that candidates can, during their preparation, refer to literature best suited to the prescribed syllabus. The following books are recommended for the preparation for the AML KYC examination:
|Name of the book||Author|
|Anti-Money Laundering and Know Your Customer||Indian Institute of Banking and Finance|
|AML Compliance Fundamentals||M.L. Humphrey|
|Guide for AML Auditors – Know Your Customer Compliance||Bob Walsh|
However, given the vast syllabus, candidates should do their research and pick additional literature best suited for their preparation.
Points to Remember
There are certain key pointers prescribed by IIBFI that candidates must take note of. These are as follows:-
- Candidates should log in thirty (30) minutes before the examination time.
- Candidates will be asked to display a photo ID card and may also need to show the area, using a webcam, in which they are attempting the examination.
- Once the exam is completed, a provisional scorecard will be displayed on-screen.
- For examinations conducted from February to July, developments in the banking and finance sector up to 31st December will be considered. Similarly, for exams held during the period August to January, developments in the banking and finance sector up to 30th June will be considered.
A well-thought-out strategy and its implementation are often the key to success in competitive exams. Candidates must have a clear understanding of their objectives so that they can work towards the same. Here are a few tips for candidates preparing for the AML KYC exam:-
- Be thorough with the syllabus – A good understanding of the syllabus goes a long way in ensuring success.
- Stay updated with the latest developments in the relevant field to gain an edge over the competition.
- Rest before the night of the exam – It is crucial to get a sound sleep the night before the exam. Accordingly, plan and do not leave things for the last minute.
- Since this is an online exam, ensure that your system fulfils the basic requirements needed to take the exam.
Yes. The AML KYC exam conducted by IIBF is an online exam.
The examination is conducted on pre-announced dates determined by the IIBF. Usually, the exam is conducted on the 2nd and 4th Saturdays and all Sundays. However, this is subject to notification by IIBF.
No. There is no negative marking in the exam.
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