AML/CFT Provisions
Anti-Money Laundering and Counter-Financing of Terrorism for SEBI-registered intermediaries — PMLA, KYC, and FATF.
Exam Pattern & Marking
Detailed Syllabus
8 chapters · 100 total marks
| # | Chapter | Marks | Practice Qs |
|---|---|---|---|
| 1 | SEBI Guidelines for AML Standards, CFT and PF with KYC Norms | 16 | 29 |
| 2 | KYC Guidelines | 14 | 25 |
| 3 | Prevention of Money Laundering Act, 2002 | 14 | 26 |
| 4 | AML, CFT and PF Guidelines | 12 | 21 |
| 5 | Discussion on PMLA-related Cases | 12 | 21 |
| 6 | Introduction to AML, CFT and Proliferation Financing | 12 | 27 |
| 7 | AML_CFT_Guidelines | 10 | 27 |
| 8 | Scheduled Offences under PMLA | 10 | 19 |
| Total | 100 | 195 |
Marks per chapter reflect the official NISM syllabus weightage. Practice question counts show the bank size in our app — use them to gauge depth of preparation needed per chapter.
Key Knowledge Areas
Overview
Series XXIV is the AML/CFT compliance certification — required for designated AML compliance staff at SEBI-registered intermediaries. It covers the PMLA framework, FATF recommendations, KYC norms, and suspicious transaction reporting.
At a glance: 100 questions · 2 hours · 60% pass mark · 0.25 negative marking · ₹1,500 + GST.
Who should take XXIV
- AML compliance officers (Principal Officer roles)
- KYC team leads
- Risk officers covering financial crime
- Brokerage / AMC compliance staff with AML duties
Key Knowledge Areas
Prevention of Money Laundering Act (PMLA) 2002
The foundational Indian AML statute. Key obligations:
- Maintain records of transactions, identity of clients
- Furnish information to FIU-IND
- File STR / CTR / NTR / CCR as applicable
- Undertake CDD on customer onboarding
Key Fact: Money laundering offence is non-bailable, cognisable. Punishment: 3-7 years imprisonment + fine. PMLA-attached property can be confiscated.
KYC framework
| Tier | Features |
|---|---|
| Simplified KYC | For low-value accounts (₹50K threshold) |
| Standard KYC | OVD + photograph + signature |
| Enhanced Due Diligence (EDD) | Politically Exposed Persons, high-risk geographies |
OVDs (Officially Valid Documents): Aadhaar, PAN, Passport, Voter ID, DL, NREGA card.
CKYC (Central KYC)
Single repository (CERSAI) where intermediaries upload KYC. Subsequent intermediaries reuse without fresh KYC. Mandatory since 2017.
Suspicious Transaction Reports (STRs)
Any transaction with attempted/actual reasonable grounds to suspect money laundering must be reported to FIU-IND within 7 days of forming suspicion.
CTR (Cash Transaction Report) — cash transactions > ₹10 lakh / month aggregate. NTR (Non-profit Transaction Report) — for NPOs receiving > ₹10 lakh. CCR (Counterfeit Currency Report) — within 7 days of detection.
FATF recommendations
40 FATF recommendations form the global standard. India is a member of FATF since 2010 and an active participant in the Asia-Pacific Group.
Specific AML risks for securities markets
- Layered trading to disguise origin
- Use of multiple accounts / third parties
- Shell entities for money parking
- Exchange-traded products to obscure trail
Exam Tips
Tip 1: PMLA reporting timelines (STR within 7 days, CTR monthly, etc.) are guaranteed exam topics. Memorise the calendar.
Tip 2: FATF 40 Recommendations broad themes are tested — risk-based approach, beneficial ownership, designated persons.
Tip 3: KYC categories and OVD list — know which documents qualify and which don’t.
Tip 4: Recent SEBI / PMLA amendments (politically exposed persons, beneficial ownership disclosure) appear regularly.
Try the Free Quiz
Test your knowledge with our free Series XXIV practice quiz — or get the full bank of 195+ XXIV questions plus mock tests in the NISM Exam Prep app.
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