Podcast
Questions and Answers
Which of the following is a requirement for branches and majority-owned subsidiaries of regulated entities located abroad regarding KYC/AML standards?
Which of the following is a requirement for branches and majority-owned subsidiaries of regulated entities located abroad regarding KYC/AML standards?
What effective date is established for the Reserve Bank of India KYC Directions, 2016?
What effective date is established for the Reserve Bank of India KYC Directions, 2016?
Which term is defined in the context of the Prevention of Money-Laundering Act, 2002?
Which term is defined in the context of the Prevention of Money-Laundering Act, 2002?
Which of the following statements is true regarding the applicability of the KYC Directions?
Which of the following statements is true regarding the applicability of the KYC Directions?
Signup and view all the answers
Under which circumstances can foreign branches of regulated entities not implement RBI guidelines for KYC?
Under which circumstances can foreign branches of regulated entities not implement RBI guidelines for KYC?
Signup and view all the answers
What constitutes a beneficial owner in the case of a company?
What constitutes a beneficial owner in the case of a company?
Signup and view all the answers
In the context of a partnership firm, how is a beneficial owner determined?
In the context of a partnership firm, how is a beneficial owner determined?
Signup and view all the answers
What percentage of shares or capital defines a controlling ownership interest in a company?
What percentage of shares or capital defines a controlling ownership interest in a company?
Signup and view all the answers
Who qualifies as a beneficial owner in an unincorporated association?
Who qualifies as a beneficial owner in an unincorporated association?
Signup and view all the answers
What does 'Control' refer to in the context of determining beneficial ownership?
What does 'Control' refer to in the context of determining beneficial ownership?
Signup and view all the answers
Study Notes
Introduction to KYC Directions 2016
- Called the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016.
- Effective from the date posted on the Reserve Bank of India’s official website.
Applicability
- Applies to all entities regulated by the Reserve Bank of India except specified otherwise.
- Extends to branches and majority-owned subsidiaries located abroad, adhering to local laws.
- Requires disclosure to Reserve Bank of India if local laws hinder guideline implementation.
- Allows adoption of the stricter KYC/AML standards between Reserve Bank of India and host country regulators.
Key Definitions
- Aadhaar Number: Defined under the Aadhaar Act, 2016, it pertains to a unique identification number for individuals.
- Act and Rules: Refers to the Prevention of Money-Laundering Act, 2002, and associated rules, including amendments.
- Authentication: Specifically related to the Aadhaar process for verification purposes.
Beneficial Owner (BO)
- For Companies: Identifies a natural person with a controlling interest (ownership of over 10% of shares/capital).
- For Partnership Firms: Owner must hold more than 15% of capital or profits to qualify as a beneficial owner.
- For Unincorporated Associations: Similar ownership criteria of more than 15% apply in terms of property or profits.
- Emphasizes compliance with prescribed standards equivalent to face-to-face Customer Identification Process (CIP).
Wire Transfer Definitions
- Batch Transfer: Multiple individual wire transfers sent to the same institution, may target different recipients.
- Beneficiary: Individual or legal entity recognized as the recipient of the wire transfer by the originator.
- Beneficiary RE: Financial institutions regulated by RBI, responsible for receiving wire transfers.
- Cover Payment: A wire transfer with a direct payment message and routing of funds through intermediaries.
- Cross-Border Wire Transfer: Transfers where sending and receiving institutions are in different countries; may involve multiple countries as well.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore the Reserve Bank of India's KYC Directions issued in 2016. This quiz covers its applicability, key definitions, and critical requirements for entities regulated by the RBI. Test your understanding of KYC and AML standards and their implications.
