Questions and Answers
What is the purpose of full KYC in case of Medium Risk Customer Category?
What is the requirement for identification documents of a guardian or family member who proposes to operate the account?
Who is considered a person or entity that maintains an account or business relationship?
What is the correct method of opening and verifying an account?
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What is a characteristic of a high-risk customer?
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What is the requirement for KYC documents in case of a customer belonging to a low-income group?
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What is the purpose of knowing the correct location and address of the customer?
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What is the requirement for KYC documents in case of multiple account holders?
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Study Notes
Account Operation and Identification
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- No identification documents are required for a guardian or family member operating an account if they already have a satisfactorily conducted account.
Customer Identification and KYC
- For Medium Risk Customer Category, full KYC (Know Your Customer) is required to:
- Determine the true identity and beneficial ownership of accounts
- Verify the customer's location, address, and business nature
- Identify the account holder and beneficial owners
Suspicious Account Activity
- Red flags for account activity include:
- Opening an account at a non-work location
- Frequent large deposits from other banks
- Requesting closure of newly opened accounts with high-value transactions
- Inconsistent account opening and verification procedures
KYC Document Requirements
- KYC documents are required for:
- All account members
- All office bearers
- No exemptions for individuals from low-income groups
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Description
Test your knowledge of banking rules and regulations, including account operations and identification requirements.