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    Question

    As per RBI’s KYC/AML guidelines on wire transfers, the

    term “Beneficiary” refers to:
    A The bank that initiates the transfer on behalf of the sender Correct Answer Incorrect Answer
    B The intermediary institution that routes the transaction Correct Answer Incorrect Answer
    C The person or entity sending the funds (originator) Correct Answer Incorrect Answer
    D The natural or legal person designated to receive the funds Correct Answer Incorrect Answer
    E The regulator overseeing the transfer process Correct Answer Incorrect Answer

    Solution

    • In a wire transfer, three parties are usually involved: o Originator – the person/entity initiating the transfer. o Intermediary bank(s) – institutions that process and route the transfer. o Beneficiary – the final recipient of the funds. • According to RBI’s KYC/AML guidelines, the Beneficiary is specifically the natural or legal person identified to receive the amount transferred, as instructed by the originator. • Proper identification of both the originator and the beneficiary is critical to prevent misuse of wire transfers for money laundering or terrorist financing.

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