📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Which of the following conditions must be satisfied for

      a Regulated Entity (RE) to rely on third-party customer due diligence (CDD) under RBI’s KYC/AML framework?
      A Third-party records must be immediately accessible to the RE Correct Answer Incorrect Answer
      B The third party must be regulated and compliant under the PML Act Correct Answer Incorrect Answer
      C The third party must not be based in a high-risk jurisdiction Correct Answer Incorrect Answer
      D The RE must ensure availability and verification of identification data Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      RBI permits reliance on third-party CDD to reduce duplication, but only under strict safeguards: 1. Immediate access to records: The RE must be able to access customer details without delay. 2. Regulated third party: The third party must be subject to regulation and supervision under the PMLA (Prevention of Money Laundering Act) and related guidelines. 3. Jurisdictional safeguards: The third party must not be located in a high-risk country/jurisdiction identified by FATF. 4. Verification: The RE must independently ensure that identification data and other relevant information are available and authentic. Therefore, the correct answer is All of the above.

      Practice Next
      More Accounts Questions

      Relevant for Exams:

      ask-question