FIN370 Quiz Chapter 1

Write your full name (for attendance)

Banking is defined as ​​ (a)   by the ​ (b)   created and regulated by the ​ (c)  

• jurisdiction
• legislation
• government

These activities are banking activities EXCEPT:-

• Receiving deposit of money from customers

• Making advances or lending to customers

• Provide protection against unexpected financial losses

• Paying or collecting of cheques

Conventional Banks are licensed under Financial Services Act 2013 whereas Islamic Banks are licensed under _____

Gharar is prohibited under Islamic banking . Gharar refers to

• uncertainty

• usury

• gambling

• forbidden

Major source of income for a bank is

• Amount borrowed from other financial institution/inter-bank

  borrowing

• Savings, Current & Time Deposits

• Capital & reserves

• Debetures and notes

Major use of funds in a bank is

• Cash & reserves with BNM

• Deposits at other larger banks

• Investments

• Loan activities

Spell Out AMLATFPUAA = __

What is Money Laundering?

• The person who engage directly or indirectly in a transaction that involve proceeds of

  any lawful activity

• The person who acquires, receive, possesses, disguises, transfers, converts, exchanges,

  carries, disposes, uses, removes from or brings into Malaysia proceeds

  of any lawful activity

• The person who conceals, disguises or impedes the establishment of the nature, origin,

  location, movement, disposition, title of, right with respect to, or

  ownership of, proceeds of any lawful activity

• The person who engage directly or indirectly in a transaction that involve proceeds of

  any unlawful activity

The 3 stages of money laundering are

• Laundering

• Placement

• Layering

• Integration