INDIAN INSTITUTE OF BANKING & FINANCE

(An ISO 9001 - 2008 CERTIFIED ORGANISATION)

Kohinoor City, Commercial-II, Tower-1, 2nd Floor, Kirol Road, Kurla (West), Mumbai - 400 070
Web-site : www.iibf.org.in

Certificate Examination in Anti-Money

Laundering & Know Your Customer
Rules & Syllabus 2012
Banks have set up specialized departments to attend to functions like credit
card business, housing loans, vehicle loans, trade finance, consumer loans,
Bancassurance etc. Of late some of the banks have floated subsidiaries to
take up these functions. Though banks offer some training to their staff to impart
essential knowledge to handle these portfolios as per their requirements, there
is a need for an educational programme considering the vast area of knowledge
essential for such activities.

Compliance with ‘Know Your Customer’ guidelines and ‘Anti-Money Laundering’

standards has become necessary for healthy financial relationships both by the
banks / financial institutions in India. The course aims to provide a comprehensive
coverage of the various guidelines / standards / guidance notes issued by RBI / IBA /
International bodies etc.

OBJECTIVE

To provide advanced knowledge and understanding in AML / KYC standards and

to develop the professional competence of employees of banks and financial
institutions.

ELIGIBILITY

Employees of Banks / NBFCs / Financial Institutions / Insurance Companies etc. are

eligible to write the examination.

SUBJECT OF EXAMINATION

Anti-Money Laundering & Know Your Customer

EXAMINATION FEES / REGISTRATION FEE

For Members For Non-Members

First attempt** `2,000/- @`3,000/-
Subsequent each attempt `500/- `1,000/-
** Includes e-learning and first attempt examination fee
@ Includes registration fee of `500/-

1
DELIVERY

Institute will be providing an e-learning to all the candidates who enroll for the
examination. This facility is provided to the candidates, who apply for AML / KYC
examination and are eligible to appear for May / June - 2011 exam onwards.
Candidates are requested to provide their e-mail ids to enable them to receive the log
in id and password for the e learning.

MEDIUM OF EXAMINATION

Examination will be conducted in English only.

PATTERN OF EXAMINATION

(i) Each Question Paper will contain approximately 120 objective type multiple
choice questions.

(ii) Information about mode of examination (online / offline) and list of examination
centre will be provided along with Examination Application Form.

DURATION OF EXAMINATION

The duration of the examination will be of two hours.

PERIODICITY AND EXAMINATION CENTRES

(i) The examination will be conducted normally twice a year in May / June and
November / December.

(ii) Examination will be conducted on a Sunday.

PASSING CRITERIA

Candidate has to secure 60% or more marks in the examination to pass i.e. 60 marks
out of 100.

PROCEDURE FOR APPLYING FOR EXAMINATION

Examination Application Forms will be available at the Institute’s website

www.iibf.org.in which could be downloaded and filled in. The application forms will
be also available at the Institute’s Zonal Offices, Corporate Office and also at such
other centres / offices as may be notified from time to time. Examination Application
Forms duly filled in (for the detailed instructions refer the Examination Application
Form) along with requisite examination fee should be submitted to the respective
Zonal Office at Mumbai, Chennai, New Delhi, Kolkata. The Institute accepts no

2
responsibility for delay or inconvenience arising from the candidate’s failure to reach
the Examination Application Form in time or if the form is incomplete or failure to
furnish all the essential information about himself / herself and the details of his / her
examination.

PROOF OF IDENTITY

Non-members applying for Institute's exams / courses are required to submit a

copy of any one of the following documents along with Examination Application
Form. Forms without the same shall be liable to be rejected.

1) Photo i/card issued by Employer or 2) PAN Card or 3) Driving License or

4) Election Voter's i/card or 5) Passport

STUDY MATERIAL

The Institute has developed a courseware to cover the syllabus. Candidates are
advised to make full use of the courseware and also the updates put on the IIBF
website from time to time. However, as banking and finance fields are dynamic, rules
and regulations witness rapid changes. Hence, candidates should keep themselves
updated on latest developments by going through Master Circulars issued by RBI,
visiting the websites of organizations like RBI, SEBI, BIS etc.

The Institute has published study books to facilitate study and they will be available at
outlets / showrooms / distributors of M/s. Macmillan Publishers India Ltd. The price of
each book and detailed list of outlets is mentioned below.

Candidates may purchase directly from outlets / showrooms / distributors of

the above.

Candidates who purchase books directly from outlets of publishers will be offered a
discount of 20% on the cost price of the book. Candidates desirous of purchasing
books by post will not be offered any discount. However the postage will be borne by
publishers. Candidates would be required to send their indent to publishers’ outlet
along with a Demand Draft for the cost of book/s. The Demand Draft should be drawn
in favour of M/s. Macmillan Publishers India Ltd. (No cheques will be accepted).
Candidates are requested not to send any request for the purchase of books to
the Institute’s Zonal Offices / Corporate Office.

Name of the Book Price

Anti-Money Laundering & Know Your Customer (2010) `165/-

3
 ADDRESSES OF MACMILLAN PUBLISHERS INDIA LTD.
BRANCHES & SHOWROOMS

New Delhi Patna

2/10 Ansari Road, Daryaganj, Sinha Kothi, Sinha Library Road, Patna-001
New Delhi-110002 Phone : (0612) 2232550 / 2224348
Phone : (011) 23273624 / 23273814 / E-mail : [email protected]
47972200 Pune
E-mail : [email protected] Plot no.17, 1st floor,
Kolkata Swastishree Co-op Hsg. Society Ltd.,
Unit No 302, L&T Chambers, Ganesh Nagar, Karve Nagar, Pune-411052
(3rd Floor), 16 Camac Street, Phone : (020) 25420321 / 22
Kolkata-700017 E-mail : [email protected]
Phone : (033) 22834481-5 Bangalore
E-mail : [email protected] Jaico Publishing House, 14/1,
Chennai 1st Main Road, 6th Cross,
21 Patullos Road, Chennai-600002 Gandhi Nagar, Bangalore-560009
Phone : (044) 28520646 / 30915100 Phone : 080-22267016 / 22257083
E-mail : [email protected] E-mail : [email protected]
Bhopal The BOOKWORM - Good Books Great
76 Malviya Nagar, TT Nagar, Bhopal-462003 Prices
Phone : (0755) 2553895 / 2576029 No. 80/1, Shrunghar Shopping Complex,
E-mail : [email protected] M. G. Road, Bangalore-560001
Chandigarh Phone : (080) 40913205, Mob. 9854076757
First Floor, SCO 91, Sector 44 C, E-mail : [email protected]
Chandigarh-160047 The BOOKWORM - Good Books Great
Phone : (0172) 2611561/ 5088291 Prices
Email : [email protected] No. 32 Basement, Brigade Road,
Cuttack Cross Brigade Rd., Below Prabhu Digitals,
Maitree Vihar, Link Road, Cuttack-753012 Bangalore-560001
Phone : (0671) 2311979 / 2331979 Phone : (080) 41126755, Mob. 9845076757
E-mail : [email protected] E-mail : [email protected]
Guwahati E. R. Manoharan
S. C. Goswami Road, UBS Publisher's & Distributors Pvt. Ltd.,
Pan Bazar, Guwahati-781001 No. 148, Mysore Road, Bangalore-560026
Phone : (0361) 2516564 / 2633529 Phone : (080) 26756671-73
E-mail : [email protected] E-mail : [email protected]
Jaipur Madurai
B-48 Sahkar Marg, Opp. Imliwala Phatak, M/s. Selvi Book, Shop. 92, Nethaji Road,
Lai Kothi Scheme, Jaipur - 302015 Near New Arya Bhavan Signal,
Phone : (0141) 2741308 Madurai-625001.
E-mail : [email protected] Phone : (0452) 4380169 / 2343510
Lucknow E-mail : [email protected]
17/1, Mudra Building, Trichy
Madan Mohan Malviya Marg, M/s. Golden Book House, No. 5, First Floor,
Lucknow-226001 Vignesh Aparna, New Bishop Heber Colleg,
Phone : (0522) 2209780 / 2208810 Vayalur Road, Puthoor, Trichy-620017
E-mail : [email protected] E-mail : [email protected]
Mumbai Tanjore
404, Antariksh, Makwana Road, M/s. Sri Murugan Publications,
Off. Marol Maroshi Road, Marol, Raja Rajan Vanigga Valaga Arangam,
Andheri East, Mumbai-400059 Southrampet, Tanjore-613001
Phone : (022) 42152803/ 04 Phone : (04362) 272922 / 272168
E-mail : [email protected] Palayamkottai
Mumbai M/s. Eagle Book Centre, 168 Trivandrum
Mercantile House, Magazine Street, Road, Opp to VOC Ground,
Reay Road (East), Mumbai-400010 Palayamkottai-627002
Phone : (022) 23724401 / 23726017 / Phone : (0462) 2578899
23741423 Trichy
Nagpur M/s. International Books, 76,
G9-11, Achraj Towers- II, Chhaoni, Nandhi Koil Street, Trichy-620002
Nagpur-440013 Phone : (0431) 2703743
Phone : (0712) 2593103 / 2552595 E-mail : [email protected],
E-mail : [email protected] [email protected]

4
SYLLABUS

The details of the prescribed syllabus which is indicative are furnished

below. However, keeping in view the professional nature of examinations,
all matters falling within the realm of the subject concerned will have to be
studied by the candidate as questions can be asked on all relevant matters
under the subject. Candidates appearing for the Examination should particularly
prepare themselves for answering questions that may be asked on the latest
developments taking place under the various subjects of the said examination
although those topics may not have been specifically included in the syllabus.
The Institute also reserves to itself the right to vary the syllabus / rules / fee
structure from time to time. Any alterations made will be notified from time
to time. Further, questions based on current developments in banking and
finance may be asked.

Candidates are advised to refer to financial news papers / periodicals more

particularly "IIBF VISION" and "BANK QUEST" published by the Institute.

SYLLABUS

(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)

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 - Organised Financial Crimes Customer - Definition under

5
the KYC Principles - Transaction Profile - Organisational 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

6
 COURSES OF IIBF
A. Flagship Courses
+
JAIIB
+
CAIIB
+
Diploma in Banking & Finance
B. Specialised Post Graduate Diploma Courses (for Member* and Non-Members**)
+
Diploma in Treasury, Investment and Risk Management
+
Diploma in Banking Technology
+
Diploma in International Banking and Finance
+
Diploma in Urban Co-operative Bank
+
Diploma in Commodity Derivatives for Bankers
+
Diploma for Micro Finance Professionals in collaboration with Sa-Dhan
+
Advanced Wealth Management Course
+
Diploma in Home Loan Advising
C. Specialised Certificate Courses (for Member* and Non-Members**)
+
Certificate in Trade Finance
+
Certified Information System Banker
+
Certificate in Anti-Money Laundering / Know Your Customer
+
Certificate in Quantitative Methods for Bankers
+
Certificate in Credit Cards for Bankers
+
Certificate Examination in Banking Oriented Paper in Hindi
+
Certificate Examination in SME Finance for Bankers
+
Certificate Examination in Customer Service & Banking Codes and Standards
+
Certificate Examination in Basics of Banking / Credit Cards for employees of
IT Companies
+
Certificate Course for Business Correspondents / Business Facilitators
+
Certificate Examination for Debt Recovery Agents
D. Management Courses
+
Advanced Management Program in collaboration with SIES - Mumbai, Welingkar-
Mumbai, IMI-Delhi, IPE-Hyderabad.
+
Project Finance Management Blended Course with IFMR, Chennai
+
CAIIB linked MBA with IGNOU.
Educational support :
+
Publishing specific courseware for each paper / examination and Workbooks etc.
+
Tutorials through Accredited Institutions, Virtual Classes, e-learning through Portal,
Contact Classes or Campus Training - Model Questions and subject updates on
the net
Other activities :
+
Research, Seminars, Conferences, Lectures, etc.
+
Publications of books, Daily e-newsletter, monthly newsletter and quarterly journal
+
Training & Consultancy and Financial Education
* Members are employees of Banks and Financial Institutions who have enrolled as
members of IIBF.
** Non-Members are eligible candidates for each course / examination without IIBF
Membership.
The Syllabi, Rules / Regulations, Examination Forms and other information pertaining to the
examinations are available with Institute's Offices at Mumbai, Chennai, New Delhi, Kolkata
and also at such other centers / offices as may be notified from time to time. The same is also
available at our website www.iibf.org.in.

7
 MEMBERS OF THE GOVERNING COUNCIL (As on 01/07/2012)
PRESIDENT Shri Arun Kaul, Chairman & Managing
Shri M. D. Mallya, Chairman & Managing Director, UCO Bank
Director, Bank of Baroda Shri M. Narendra, Chairman & Managing
Director, Indian Overseas Bank
VICE PRESIDENTS
Shri T. M. Bhasin, Chairman & Managing
Shri K. R. Kamath, Chairman & Managing
Director, Indian Bank
Director, Punjab National Bank
Representing Financial Institutions
Shri Rana Kapoor, Managing Director &
Chief Executive Officer, YES Bank Shri T. C. A. Ranganathan, Chairman &
Managing Director, Export -Import Bank
Representing Reserve Bank of India of India
Shri S. Karuppasamy, Executive Director Representing Private Sector Banks
Representing State Bank of India and its Shri Ananthakrishna, Chairman,
Associate Banks Karnataka Bank Ltd.
Shri Pratip Chaudhuri, Chairman, State Representing Co-operative Banks
Bank of India Shri S. K. Banerji, Managing Director,
Smt. Arundhati Bhattacharya, Deputy The Saraswat Co-op. Bank Ltd.
Managing Director & CDO, State Bank Representing other Bodies / Experts
of India
Shri M. Balachandran, Director, Institute
Representing Public Sector Banks of Banking Personnel Selection
Shri A. K. Misra, Chairman & Managing Prof. Y. K. Bhushan, Senior Advisor, ICFAI
Director, Bank of India Business School
Shri S. Raman, Chairman & Managing Shri Allen C. A. Pereira, Director, National
Director, Canara Bank Institute of Bank Management (NIBM)
Shri M. V. Tanksale, Chairman & Managing Dr. K. Ramakrishnan, Chief Executive,
Director, Central Bank of India Indian Banks’ Association (IBA)

Shri J. P. Dua, Chairman & Managing From IIBF

Director, Allahabad Bank Dr. R. Bhaskaran, Chief Executive Officer

ADDRESSES FOR CONTACT

Corporate Office :
Indian Institute of Banking & Finance
Kohinoor City, Commercial-II, Tower-1, 2nd Floor,
Kirol Road, Kurla (West), Mumbai - 400 070
Tel : 022-2503 9746 / 9604 / 9907 Fax : 022-2503 7332
E-mail : [email protected]
Northern Zonal Office : Western Zonal Office :
Indian Institute of Banking & Finance Indian Institute of Banking & Finance
109-113, Vikrant Towers, 1st Floor, 191-F, Maker Towers, 19th Floor,
4, Rajendra Place, New Delhi - 110 008 Cuffe Parade, Mumbai - 400 005
Tel. : 91-011-2575 2191/92 Tel. : 022-2218 3302 / 2218 5134
Fax : 91-011-2575 2193 Fax : 022-2218 0845
E-mail : [email protected] E-mail : [email protected]
Quality Printers (I) Ph. 24922297

Southern Zonal Office : Eastern Zonal Office :

Indian Institute of Banking & Finance Indian Institute of Banking & Finance
No.94, Jawaharlal Nehru Road, 408, 'Anandlok', 'A' Block, 4th Floor,
(100 Feet Road), Opp. Hotel Ambica 227, Acharya J. C. Bose Road,
Empire, Vadapalani, Chennai - 600 026 Kolkata - 700 020
Tel. : 044-2472 2990/2472 7961 Tel. : 033-2280 9681/82/83
Fax : 044-2472 6966 Fax : 033-2280 9680
E-mail : [email protected] E-mail : [email protected]