NISM Series XXIV : AML and CFT Provisions in Securities Markets Certification Examination - Mock Test

Weightage - NISM Series XXIV : AML and CFT Provisions in Securities Markets Certification Examination

Syllabus - NISM Series 24 : AML and CFT Provisions in Securities Markets Examination

Chapter-1 Introduction to Anti Money Laundering (AML), Combating the Financing of Terrorism (CFT) and Proliferation Financing (PF)

• 1.1 Know the concept of money laundering
• 1.2.1 Need for Anti Money Laundering Laws (History)
• 1.2.2 Learn the process of money laundering (Placement/Layering/Integration)
• 1.2.3 Money laundering Stages
• 1.3 Know Global initiatives towards Anti Money Laundering Laws
  • 1.3.1 Bank Secrecy Act of 1970 (BSA)
  • 1.3.2 Financial Action Task Force (on Money Laundering) - FATF (1989)
  • 1.3.3 The International Monetary Fund (IMF)
  • 1.3.4 Bank for International Settlements (BIS) Initiative, (1930)
  • 1.3.5 The Vienna Convention (1988)
• 1.4 Know Indian initiatives towards Anti Money Laundering Laws
  • 1.4.1 Prevention of Money Laundering Act, 2002 (PMLA)
  • 1.4.2 Unlawful Activities Prevention Act, 1967 (UAPA)
  • 1.4.3 Foreign Exchange Management Act, 1999 (FEMA)
  • 1.4.4 Guidelines on Anti-Money Laundering (AML) Standards and Combating the Financing of Terrorism (CFT)/Obligations of Securities Market Intermediaries under the Prevention of Money Laundering Act, 2002 and Rules framed there under
• 1.5 Financial Intelligence Unit (FIU)

Chapter-2 Prevention of Money Laundering Act, 2002

• 2.1 Understand the Prevention of Money Laundering Act, 2002
• 2.1.1 Section 2 of the PMLA 2002
• 2.1.2 Section 3 of the PMLA 2002
• 2.1.3 Section 4 of the PMLA 2002
• 2.1.4 Section 5 of the PMLA 2002
• 2.1.5 Section 12 of the PMLA 2002
• 2.1.6 Section 56 of the PMLA 2002

Chapter-3 The Prevention of Money-laundering (Maintenance of Records) Rules, 2005

• 3.1 Know PMLR
• 3.2 Understand Maintenance of Records of Transactions
  • 3.2.1 Maintenance of Records of Transactions (Nature and Value) (Rule 3)
  • 3.2.2 Records Containing Information (Rule 4)
  • 3.2.3 Procedure and Manner of Maintaining Information (Rule 5)
  • 3.2.4 Procedure and manner of furnishing information (Rule 7)
  • 3.2.5 Furnishing of information to the Director (Rule 8)
  • 3.2.6 Client Due Diligence (Rule 9)
• 3.3 Learn Digital Know Your Customer (KYC) Procedure

Chapter-4 Scheduled Offences

• 4.1 Know the Concept of Offence
• 4.2 Know the List of Scheduled Offences

Chapter-5 Anti Money Laundering (AML), Combating the Financing of Terrorism (CFT) and Proliferation Financing (PF) Guidelines

• 5.1 Know the AML & CFT Guidelines
• 5.2 Understand the AML & CFT Guidelines
• 5.2.1 Section 51A of Unlawful Activities (Prevention) Act 1967
• 5.2.2 Section 12 of the Weapons of Mass Destruction and Delivery Systems (Prohibition of Unlawful Activities) Act, 2005
• 5.2.4 Purpose and Scope of the Guidelines

Chapter-6 SEBI Guidelines for Anti Money Laundering (AML) Standards, Combating the Financing of Terrorism (CFT) and Proliferation Financing (PF)

• 6.1 Understand SEBI Guidelines on AML, CFT and PF
  • 6.1.1 Obligation to establish policies and procedures and its Mapping
  • 6.1.2 Policies and procedures to combat ML and TF shall cover
• 6.2 Learn written Anti Money Laundering Procedures
  • 6.2.1 Client Due Diligence (CDD)
  • 6.2.2 Policy for acceptance of clients
  • 6.2.3 Client Identification Procedure
  • 6.2.4 Risk Management
  • 6.2.5 Risk Assessment
  • 6.2.6 Monitoring of Transactions
  • 6.2.7 Suspicious Transaction Monitoring and Reporting
  • 6.2.8 Record Management
  • 6.2.9 Record Keeping
  • 6.2.10 Retention of Records
  • 6.2.11 Reporting to Financial Intelligence Unit-India

Chapter-7 SEBI Guidelines for KYC Norms in Securities Market

• 7.1 Learn SEBI guidelines for KYC norms
  • 7.1.1 Uniform KYC Format
  • 7.1.2 Requirement of Permanent Account Number (PAN)
  • 7.1.3 Exemptions/Clarifications to PAN requirements
  • 7.1.4 Proof of Identity (PoI) - List of documents admissible
  • 7.1.5 Proof of Address (PoA) - List of documents admissible
  • 7.1.6 Acceptance of third party address as correspondence address
  • 7.1.7 Identification of Beneficial Ownership
  • 7.1.8 Requirement of additional documents for non-individuals (Legal Entities)
  • 7.1.9 Requirement of Mobile Number and Email ID
  • 7.1.10 Digital KYC
• 7.2 Know features for online KYC App of the Intermediary
  • 7.2.1 Requirement of In-Person Verification (IPV)
  • 7.2.2 Adaptation of Aadhaar based e-KYC process and e-KYC Authentication facility for Resident Investors under section 11A of the Prevention of Money Laundering Act, 2002: KUA and Sub KUA mechanism
• 7.3 Know KYC for SARAL Account Opening Form for resident individuals
• 7.3.1 Confidentiality of client information
• 7.4 Learn about Know Your Client (KYC) Registration Agency
• 7.5 Learn Guidelines for Intermediaries
  • 7.5.1 Guidelines for KRAs

Chapter-8 Discussion on PMLA related Cases

• 8.1 Know about FIU-IND V/S Way2Wealth Brokers Private Limited
• 8.2 Know about SEBI V/S SKSE Securities Limited
• 8.3 Know about SEBI V/S Raima Equities Private Limited
• 8.4 Know about SEBI V/S Marfatia Stock Broking Private Limited
• 8.5 Know about SEBI V/S Shreepathi Holdings & Finance Pvt. Ltd.