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

1. 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
   1.1.1 Need for Anti Money Laundering Laws (History)
   1.2 Learn the process of money laundering (Placement/ Layering/ Integration)
   1.2.1 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
   1.4.5 Financial Intelligence Unit (FIU)

1. 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

1. 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

1. Chapter-4 Scheduled Offences
   4.1 Know the Concept of Offence
   4.2 Know the List of Scheduled Offences

1. 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 35 of Unlawful Activities (Prevention) Act 1967
   5.2.3 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

1. 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

1. Chapter-7 SEBI Guidelines for KYC Norms in Securities Marke
   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 add
   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

1. 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 vs Marfatia Stock Broking Private Limited
   8.5 Know about SEBI vs. Shreepati Holdings & Finance Pvt. Ltd.
   8.6 Know about BOI Shareholding Limited (BOISL) v/s SEBI
   8.7 Know about FIU-IND vs Paytm Payments Bank Limited
   8.8 Know about FIU-IND vs Virtual Digital Asset Service Provider Bybit Fintech Limited (Bybit)