NISM Series XXIV: AML and CFT Provisions in Securities Markets Certification

Examination Overview: NISM 24 AML and CFT Provisions in Securities Markets Certification

In an increasingly complex global financial ecosystem, safeguarding the integrity of the capital markets is of paramount importance. Regulatory bodies worldwide are continuously tightening measures to prevent financial crimes, making Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and the prevention of Proliferation Financing (PF) critical compliance pillars for every financial intermediary.

The Securities and Exchange Board of India (SEBI), in alignment with global Financial Action Task Force (FATF) standards, mandates strict compliance protocols for stockbrokers, depository participants, mutual funds, portfolio managers, and other intermediaries. The NISM Series XXIV certification is specifically designed to create a common, high-level knowledge benchmark for employees of these securities market intermediaries. It ensures that professionals operating in the Indian capital markets possess the necessary expertise to identify, prevent, and report illicit financial activities.

At NISMExams.in, we recognise the immense professional responsibility associated with this regulatory mandate. Relying on outdated PDFs, fragmented notes, or mere guesswork is a profound risk to your career and your organisation's compliance standing. To guarantee that you navigate this rigorous examination with absolute precision, we have engineered the most advanced NISM AML and CFT Provisions in Securities Markets Certification Mock Test ecosystem available. Our platform bridges the gap between theoretical legal frameworks and flawless, exam-ready execution.

Securing the Financial Ecosystem

The primary objective of the NISM Series XXIV examination is to foster deep awareness and functional expertise among employees regarding the prevention of money laundering and terrorist financing. The curriculum covers the entire spectrum of financial crime prevention, encompassing the legal and regulatory frameworks that govern the Indian securities market.

This certification provides an exhaustive deep dive into the Prevention of Money Laundering Act, 2002 (PMLA) and the corresponding Maintenance of Records Rules, 2005. It rigorously evaluates a candidate's understanding of what constitutes a "Scheduled Offence," the stages of money laundering (Placement, Layering, and Integration), and the exact regulatory guidelines applicable to market participants.

Furthermore, the examination places a heavy emphasis on operational compliance. Candidates are tested on their ability to execute robust Customer Due Diligence (CDD), adhere to strict Know Your Customer (KYC) norms, and implement a Risk-Based Approach (RBA) when onboarding and monitoring clients. The assessment also scrutinises your knowledge of reporting obligations to the Financial Intelligence Unit - India (FIU-IND), including the timely filing of Suspicious Transaction Reports (STRs) and Cash Transaction Reports (CTRs).

By strengthening awareness and functional understanding of these requirements, the certification promotes effective risk management and protects the financial system's stability. Initiating your preparation with a high-fidelity NISM XXIV Mock Test is the most strategic investment you can make to secure your certification and advance your career in financial compliance.

Core Examination Objectives

The official assessment is meticulously constructed to ensure that every certified professional possesses a comprehensive, regulatory, and functional mastery of AML and CFT operations. Upon successful completion of the examination, candidates will be able to:

• Comprehend Core Concepts: Understand the fundamental concepts and global standards of Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Proliferation Financing (PF).


• Master the Legal Framework: Navigate the complex provisions of the Prevention of Money Laundering Act, 2002 (PMLA), identify scheduled offences, and understand the powers of regulatory and enforcement authorities.


• Interpret Regulatory Guidelines: Understand the intricate guidelines pertaining to AML standards, CFT measures, and PF as mandated by SEBI and other regulatory bodies.


• Execute Due Diligence: Learn the mechanics of Customer Due Diligence (CDD), comprehensive Know Your Customer (KYC) norms, Enhanced Due Diligence (EDD) for high-risk clients, and the risk-based approach for identifying suspicious activities.


• Fulfil Reporting Obligations: Understand the stringent reporting obligations, including the identification and filing of Suspicious Transaction Reports (STRs), and the overarching compliance requirements for designated directors and principal officers within intermediaries.


• Implement Internal Controls: Gain vital knowledge of internal audit mechanisms, record-keeping mandates, employee training requirements, and the severe civil and criminal penalties associated with non-compliance.

Engaging with an authentic NISM XXIV Model Test allows you to test your understanding of these critical objectives in a simulated, high-pressure environment before sitting for the official SEBI-mandated assessment.

Comprehensive Assessment Structure

To conquer the NISM Series XXIV exam, candidates must possess absolute clarity regarding the structural mechanics of the test. The assessment is conducted as an online, Computer-Based Test (CBT) across designated NISM test centres nationwide. Familiarising yourself with this precise format through a realistic NISM XXIV Practice Test is vital for effective time management and psychological readiness.

The absence of negative marking is a significant structural advantage. However, the options provided in the exam are drafted in highly dense, legal language designed to test deep conceptual clarity. Utilising a NISM XXIV Demo Test will train you to use the process of elimination effectively, ensuring you secure maximum marks on complex compliance questions.

Detailed Syllabus Outline & Weightages

The NISM Series XXIV syllabus is expansive, highly regulatory, and strictly categorised into two main parts encompassing eight core chapters. To ensure your preparation is highly efficient, our platform dynamically distributes questions to cover these exact topics comprehensively, perfectly aligning with the official SEBI weightages.

Part A: AML, CFT and Legal Framework

This foundational unit introduces the dark economy. Candidates will learn how illicit funds are integrated into the legitimate financial system. It covers the three stages of money laundering: Placement, Layering, and Integration. Furthermore, it introduces the global efforts led by the Financial Action Task Force (FATF) to combat the financing of terrorism and the financing of weapons of mass destruction (Proliferation Financing).

A highly critical chapter carrying significant weight. Candidates must master the definitions and core provisions of the PMLA, 2002. This includes understanding the definitions of proceeds of crime, the powers of the Directorate of Enforcement (ED) regarding attachment and confiscation of property, the establishment of Appellate Tribunals, and the establishment of Special Courts to try PMLA offences.

Intermediaries are bound by strict record-keeping rules. This module requires mastery of the PMLA Rules, 2005. You must understand the specific obligations of reporting entities, the exact procedures for maintaining records of transactions, the preservation period of such records (typically 5 years), and the mandate to furnish information to the Director of the Financial Intelligence Unit - India (FIU-IND). Using comprehensive NISM XXIV Study Materials is vital for memorising these specific statutory timelines.

Part B: AML Guidelines and Compliance in Securities Market

This chapter delves into the specific criminal acts that generate the "proceeds of crime." Candidates must understand the structure of the Schedule to the PMLA, which includes offences under the Indian Penal Code (IPC), the Narcotic Drugs and Psychotropic Substances Act, the Prevention of Corruption Act, and various other cross-border legislations.

This section bridges the gap between the law and practical guidelines. It covers the overarching principles of creating an effective AML/CFT compliance programme within a financial institution. It touches upon the appointment of a Principal Officer and a Designated Director, and the necessity of independent audits to test the efficacy of the AML framework.

As an employee in the securities market, SEBI's master circulars are your primary operational directive. This chapter evaluates your understanding of SEBI’s specific mandates for registered intermediaries. It covers the formulation of written AML procedures, the Risk-Based Approach (RBA) to client categorization (Low, Medium, High Risk), and the handling of alerts generated by internal surveillance systems. Practising with an NISM AML and CFT Provisions in Securities Markets Certification Model Test will heavily test your knowledge of these specific SEBI directives.

Client onboarding is the first line of defence. This highly operational chapter requires mastery of the Know Your Customer (KYC) norms. You must understand the role of KYC Registration Agencies (KRAs), the Central KYC Records Registry (CKYCR), and the process of identifying the Ultimate Beneficial Owner (UBO) for non-individual clients (like corporate entities, trusts, and partnerships). It also covers Enhanced Due Diligence (EDD) protocols for Politically Exposed Persons (PEPs) and Non-Profit Organisations (NPOs).

The final chapter grounds the legal theory in reality. It explores past case studies, regulatory orders, and real-world examples of money laundering within the securities market. Candidates must analyse how intermediaries failed in their compliance duties and the resulting punitive actions taken by regulators. Testing yourself with an NISM AML and CFT Provisions in Securities Markets Certification Demo Test ensures you understand the practical application of these legal precedents.

Why Choose NISMExams.in for Your Preparation?

If you are serious about clearing the NISM Series XXIV certification on your first attempt, you cannot rely on disorganised study methods. This exam demands clarity, precision, and an exam-level application of legal concepts. Structured, mock-driven preparation is not optional; it is the definitive difference between barely attempting the paper and confidently dominating it.

NISMExams.in is engineered with one clear, uncompromising objective: to train you exactly the way the real exam tests you. For an incredibly affordable investment of just Rs. 599 (including GST), you unlock a premium preparation ecosystem.

What We Offer in Our Premium Package:

500+ Exam-Focused Questions: Gain unshakeable confidence with our vast, meticulously curated question bank. We cover every single nuance of the syllabus, providing highly authentic NISM XXIV Mock Test Papers that mirror the difficulty, legal phrasing, and terminology of the official examination.



Case Study-Based Scenarios: Compliance is highly practical. Our package provides exclusive, real-world scenario questions to sharpen your understanding of STR filing triggers, beneficial ownership calculations, and KYC compliance scenarios.



Aligned with the Latest NISM Syllabus: The regulatory framework governing AML/CFT is highly dynamic. Our dedicated research team ensures that our study databases are strictly aligned with the latest SEBI master circulars and PMLA amendments.



Premium NISM XXIV Study Materials: Time is a valuable asset. We provide high-yield revision notes focusing purely on the crucial regulatory limits, record-preservation timelines, reporting formats, and key concepts necessary for rapid recall.



15-Days Unlimited Access: Upon enrolment, you receive full, uninterrupted access to our entire premium ecosystem for 15 days, providing the optimal window for intensive, focused preparation without the risk of cognitive fatigue.



15 Test Attempts per Set: Repetition is the foundation of mastery. Our system allows you to retake our NISM XXIV Practice Test modules 15 times, enabling you to track your performance analytics and systematically eliminate your weak areas.

Join NISMExams.in today, leverage the most powerful NISM AML and CFT Provisions in Securities Markets Certification Practice Test ecosystem, and clear your NISM Series XXIV certification exam with absolute confidence!

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At NISM Exams Test Prep, we believe that education is a powerful tool for national empowerment. We are deeply committed to our Corporate Social Responsibility (CSR) and consider it an absolute privilege to support the individuals who educate our citizens and protect our borders.

Free Faculty Access Request – Gratitude for Gurus

100% COURSE FEE WAIVER: We believe that educators are the backbone of any nation. To recognise and support their contribution, we are proud to introduce the Gratitude for Gurus initiative. This program is our way of giving back to the mentors who shape future finance professionals and strengthen India’s knowledge ecosystem.

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At NISM Exams Test Prep, we extend our deepest respect to the individuals who serve the nation and those who face physical challenges. To support their professional growth, we offer exceptional waivers on all our mock test modules.




100% FEE WAIVER: For wards and surviving spouses of personnel who lost their lives in war or operational duties. This is our humble tribute to their supreme sacrifice.

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How to Claim the Waiver?

Candidates are required to first enrol in any course on NISMExams.in and then send an email to info@nismexams.in containing the proof document along with the payment slip. (For faculty, use your official university email ID and provide your designation and department). Once received, our team will verify the submission and send an acknowledgement email. The 50-100% waiver will be processed and credited directly within two working days after verification.

This initiative reflects our unwavering commitment to supporting those who serve, educate, and strive despite challenges. Join NISMExams.in today, leverage the most powerful NISM XXIV Practice Test ecosystem, and clear your NISM Series XXIV certification exam with absolute confidence!

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Frequently Asked Questions - NISM Series XXIV: AML and CFT Provisions in Securities Markets Certification

1. What is the core focus of the exam, and why should I take an NISM XXIV Mock Test?

The exam focuses on the legal frameworks of the PMLA, 2002, and SEBI's guidelines on preventing money laundering and terrorist financing. Taking an NISM XXIV Mock Test is essential to familiarise yourself with complex legal terminology, operational compliance scenarios, and reporting timelines required to pass the CBT exam.

2. Are there any negative marks in the NISM XXIV Model Test and the official exam?

No, there is absolutely no negative marking in the official NISM Series XXIV examination. Therefore, when utilizing an NISM XXIV Model Test, candidates are strongly encouraged to attempt all 50 questions and use logical deduction for uncertain answers without fear of penalisation.

3. How many questions are included in the NISM AML and CFT Provisions in Securities Markets Certification Mock Test?

Both the official examination and our NISM AML and CFT Provisions in Securities Markets Certification Mock Test consist of 50 multiple-choice questions (MCQs). You are provided with a total duration of 60 minutes (1 hour) to complete the assessment.

4. What is the passing score for the NISM XXIV AML and CFT Certification Mock Test?

To pass the examination, candidates must secure a minimum of 50%. This means you need at least 25 correct answers out of 50. Practising extensively with an NISM XXIV AML and CFT Certification Mock Test ensures you comfortably and confidently cross this threshold.

5. How can an NISM XXIV Practice Test help me pass on my first attempt?

An NISM XXIV Practice Test accurately replicates the testing environment, difficulty level, and legal phrasing of the real exam. By repeatedly solving these structured questions, you identify weak areas (like KYC norms or STR timelines) and eliminate the anxiety associated with computer-based tests.

6. Are the NISM XXIV Study Materials updated for the latest SEBI and PMLA guidelines?

Yes, the compliance regulatory environment is highly dynamic. All our NISM XXIV Study Materials and mock test databases are meticulously updated by our research team to reflect the latest SEBI master circulars, FIU-IND directives, and PMLA amendments.

7. Who exactly should take the NISM AML and CFT Provisions in Securities Markets Certification Model Test?

The NISM AML and CFT Provisions in Securities Markets Certification Model Test is tailored for employees of securities market intermediaries—such as stockbrokers, depository participants, mutual funds, and portfolio managers, who handle client onboarding, compliance, risk management, and surveillance.

8. How long is the certification valid after taking the NISM XXIV Demo Test and passing the real exam?

After successfully clearing the official examination, your NISM Series XXIV certificate remains valid for exactly 3 years from the date of passing. Using a quick NISM XXIV Demo Test before your exam ensures your preparation is sharp enough to secure this credential.

9. Does the NISM AML and CFT Provisions in Securities Markets Certification Demo Test cover FIU-IND reporting?

Absolutely. Understanding the reporting of Suspicious Transaction Reports (STRs) and Cash Transaction Reports (CTRs) to the FIU-IND is a core syllabus component. Our NISM AML and CFT Provisions in Securities Markets Certification Demo Test dynamically allocates questions to test your knowledge of these critical timelines.

10. Can I rely on free NISM XXIV Mock Test Papers downloaded from the internet?

Relying on free, randomly downloaded NISM XXIV Mock Test Papers is highly risky. They frequently contain outdated regulatory limits, obsolete record-keeping rules, and retired SEBI guidelines, which will cause you to select incorrect answers during the actual examination.

11. What is the difference between standard KYC and the topics covered in the NISM XXIV Mock Test?

While standard KYC is procedural, the NISM XXIV Mock Test delves into the purpose behind KYC identifying Ultimate Beneficial Owners (UBOs), conducting Enhanced Due Diligence (EDD) for Politically Exposed Persons (PEPs), and applying a Risk-Based Approach (RBA) to prevent illicit financial flows.

12. Does the NISM AML and CFT Provisions in Securities Markets Certification Practice Test simulate the real exam interface?

Yes. Our NISM AML and CFT Provisions in Securities Markets Certification Practice Test is precisely engineered to replicate the exact visual layout, timer functionality, and navigation interface of the official NISM testing centres, providing a seamless simulation experience.

13. How many attempts do I get with the NISM XXIV Mock Test premium package?

When you enrol in our premium Rs. 599 package, you are granted 15 test attempts per mock set. This allows you to revisit the NISM XXIV Mock Test multiple times over your 15-day access period to monitor your progress and rectify persistent errors in legal interpretations.

14. Does the NISM XXIV AML and CFT Provisions in Securities Markets Certification Mock Test include questions on scheduled offences?

Yes, Chapter 4 covers Scheduled Offences under the PMLA. Our NISM XXIV AML and CFT Provisions in Securities Markets Certification Mock Test includes practical questions requiring you to identify which acts (under IPC, NDPS, etc.) constitute scheduled offences generating proceeds of crime.

15. How much time is realistically needed to prepare using the NISM XXIV Practice Test?

For a professional with a basic understanding of financial markets, dedicating 15 to 25 hours of focused study is highly effective. Utilising our 15-day access and consistently solving the NISM XXIV Practice Test will ensure your preparation is disciplined and comprehensive.

16. Do you provide explanations for incorrect answers in the NISM XXIV Model Test?

Certainly. When you select an incorrect option during a premium NISM XXIV Model Test, our proprietary system immediately provides a detailed, conceptual breakdown, citing the relevant PMLA section or SEBI circular to explain the logic behind the correct answer.

17. Is a PAN card mandatory before taking the NISM XXIV Demo Test and the official exam?

While you can take our NISM XXIV Demo Test without a PAN card, providing a valid Permanent Account Number (PAN) is a strict mandatory requirement to register your profile on the official NISM portal and book your final examination slot.

18. Are there any fee waivers available for the NISM AML and CFT Provisions in Securities Markets Certification Mock Test?

Yes, under our CSR initiatives, we offer a 100% fee waiver on the NISM AML and CFT Provisions in Securities Markets Certification Mock Test for teaching faculty and the families of martyrs. We also offer a 50% waiver for active defence personnel, police forces, and differently-abled (PwD) candidates.

19. What is the exam fee for the official test compared to the NISM XXIV Practice Test package?

The official NISM Series XXIV examination fee is Rs. 885 (plus payment gateway charges). To avoid failing and repaying this fee, investing just Rs. 599 in our comprehensive NISM XXIV Practice Test package is a highly strategic and cost-effective decision.

20. How do I immediately access the NISM XXIV Study Materials and mock tests?

Simply click on the purchase button, complete the secure checkout process for Rs. 599, and your account will be instantly activated. You will gain immediate, 15-day access to the entire 500+ question bank, the NISM XXIV Study Materials, and the complete mock test ecosystem.