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Questions and Answers
What does the Prevention of Money Laundering Act, 2002 require banking companies and financial institutions to do?
What does the Prevention of Money Laundering Act, 2002 require banking companies and financial institutions to do?
- Offer high-interest savings accounts
- Provide free financial advice to clients
- Invest in risky ventures
- Identify its clients and verify their identity (correct)
What information are banking companies and financial institutions required to obtain as per the Prevention of Money Laundering Act, 2002?
What information are banking companies and financial institutions required to obtain as per the Prevention of Money Laundering Act, 2002?
- Information on clients' favorite hobbies
- Information on clients' shoe sizes
- Information on the purpose and intended nature of the business relationship (correct)
- Information on clients' favorite colors
Under the Prevention of Money Laundering Act, 2002, what must intermediaries do when undertaking transactions?
Under the Prevention of Money Laundering Act, 2002, what must intermediaries do when undertaking transactions?
- Avoid asking for any client information
- Identify clients and verify their identity (correct)
- Provide loans without verifying client details
- Allow anonymous transactions
Why do banking companies and financial institutions need to verify the identity of their clients?
Why do banking companies and financial institutions need to verify the identity of their clients?
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What is a key requirement for establishing a business relationship according to the Prevention of Money Laundering Act, 2002?
What is a key requirement for establishing a business relationship according to the Prevention of Money Laundering Act, 2002?
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