Banking · KYC Guidelines and AML Compliance
A bank's internal audit evaluated KYC compliance across various accounts. Consider the following statements: Statement I: Dormant accounts (inoperative for more than two years) can be reactivated only after performing a fresh KYC process if the risk profile has changed. Statement II: The bank is required to maintain the records of the identity of its clients for at least five years after the business relationship has ended. Statement III: In the case of an e-KYC failure due to biometric mismatch, the bank can use an OTP-based Aadhaar authentication for opening any type of loan account with a limit of up to 50 lakh rupees. Statement IV: Periodic updation for low-risk customers can be done via a self-declaration if there is no change in their status. Statement V: A trust's beneficial owner is exclusively defined as the person who contributed the maximum funds to the trust's corpus. Which of the above statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1All statements are correct
- 2Only IV and V
- 3Only I, II and IV✓
- 4Only I and II
Correct answer
Only I, II and IV
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