At studywell.online, our mission is to support banking professionals with IIBF exam preparation, core banking knowledge, and the latest regulatory updates. One of the most crucial and scoring papers in the IIBF ecosystem is KYC & AML (Know Your Customer and Anti-Money Laundering).
This paper is not only important for clearing the exam but also highly relevant for day-to-day banking operations, inspections, audits, and compliance roles.
In this article, you’ll find:
✔️ Detailed syllabus explanation
✔️ Topic-wise weightage focus
✔️ Practical and exam-oriented study plan
✔️ Tips to score comfortably above passing marks
Overview of IIBF KYC–AML Paper
- Paper Name: KYC & AML
- Type: Objective (MCQs)
- Total Marks: 100
- Passing Marks: 50
- Negative Marking: Yes (¼ mark per wrong answer)
- Difficulty Level: Moderate but concept-based
Detailed Syllabus of IIBF KYC–AML
Module A: KYC Framework
This module forms the foundation of the paper.
Key Topics:
- Meaning and objectives of KYC
- Customer Acceptance Policy (CAP)
- Customer Identification Procedures (CIP)
- Customer Due Diligence (CDD)
- Enhanced Due Diligence (EDD)
- Risk-based approach to KYC
- Periodic updating of KYC
- KYC for individuals, non-individuals, trusts, NGOs
- Small accounts and simplified KYC
📌 Exam Focus:
- Definitions
- Risk categorization (Low/Medium/High)
- Differences between CDD & EDD
Module B: Anti-Money Laundering (AML)
This is the most scoring and most asked module.
Key Topics:
- Meaning of Money Laundering
- Stages of Money Laundering
- Placement
- Layering
- Integration
- Predicate offences
- Financing of Terrorism (FT)
- Red Flag Indicators
- Suspicious Transaction Monitoring
- Role of banks in AML compliance
📌 Exam Focus:
- Stages of money laundering (very important)
- Examples of suspicious transactions
- Difference between ML & TF
Module C: Legal & Regulatory Framework
This module is fact-heavy and requires memorization.
Key Topics:
- Prevention of Money Laundering Act (PMLA), 2002
- Amendments to PMLA
- Obligations of banks under PMLA
- Maintenance of records
- Reporting entities
- Powers of authorities
- Penalties for non-compliance
📌 Exam Focus:
- Sections of PMLA
- Time period for record retention
- Duties of reporting entities
Module D: Role of Regulators & Reporting
Highly practical and frequently tested.
Key Topics:
- Role of RBI in KYC–AML
- Financial Intelligence Unit – India (FIU-IND)
- STR (Suspicious Transaction Report)
- CTR (Cash Transaction Report)
- NTR (Non-Profit Organisation Transaction Report)
- Reporting timelines
- Principal Officer & Designated Director
📌 Exam Focus:
- Difference between STR & CTR
- Reporting thresholds
- Responsibilities of Principal Officer
Module E: International Standards & New Developments
Short but high-yield module.
Key Topics:
- FATF (Financial Action Task Force)
- FATF recommendations
- Wolfsberg Group
- Basel Committee guidelines
- Recent RBI circulars on KYC
- Digital KYC & Video KYC
📌 Exam Focus:
- FATF objectives
- International cooperation
- Recent RBI updates
Detailed 15-Day Study Plan for IIBF KYC–AML
Day 1–3: KYC Basics
- Read KYC definitions & objectives
- Customer Acceptance Policy
- Risk categorization
- Make short notes
Day 4–6: AML Concepts
- Money laundering stages
- Terrorist financing
- Red flags
- Solve MCQs daily
Day 7–8: Legal Framework (PMLA)
- Important sections
- Obligations of banks
- Penalties
- Focus on memory-based questions
Day 9–10: Reporting & FIU
- STR, CTR, NTR
- Reporting timelines
- Role of Principal Officer
- Practice case-based MCQs
Day 11: International Bodies
- FATF, Basel, Wolfsberg
- One-liners & facts
Day 12–13: Full Revision
- Revise short notes
- Focus on weak areas
- Re-read RBI circular highlights
Day 14: Mock Tests
- Attempt 2–3 full-length mocks
- Analyze mistakes carefully
Day 15: Final Revision
- One-liners
- Important definitions
- Do NOT start new topics
Smart Tips to Clear KYC–AML Easily
✔️ Focus on concept clarity, not mugging up
✔️ Learn definitions word-by-word
✔️ Remember reporting timelines & thresholds
✔️ Avoid guesswork due to negative marking
✔️ Revise RBI circulars at least once
Final Words
The KYC–AML paper is one of the most practical and scoring papers of IIBF if approached systematically. With the right study plan and consistent MCQ practice, scoring 60+ marks is very achievable.
At studywell.online, we regularly publish:
- IIBF exam notes
- MCQs & mock tests
- Latest RBI & compliance updates
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