General Studies · KYC Guidelines and Anti-Money Laundering
A branch manager in a metro city receives an application for opening a current account from a newly incorporated entity that claims to be a shell company for an overseas conglomerate. According to the Master Direction on KYC issued by the Reserve Bank of India, which specific action is mandatory for the bank regarding the identification of the beneficial owner in such a legal person?
- 1The bank must identify the natural person who holds more than twenty-five percent of the shares or capital or profits of the company to determine beneficial ownership.
- 2The bank is permitted to open the account without identifying the beneficial owner if the entity is a subsidiary of a listed company in a FATF compliant country.
- 3The bank must identify the natural person who, whether acting alone or together, or through one or more juridical persons, has a controlling ownership interest of more than ten percent in the company.✓
- 4The bank should rely solely on the declaration provided by the authorized signatory of the entity regarding the status of the beneficial owner.
Correct answer
The bank must identify the natural person who, whether acting alone or together, or through one or more juridical persons, has a controlling ownership interest of more than ten percent in the company.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Preparing for General Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Want more practice questions on KYC Guidelines and Anti-Money Laundering?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in General Studies · KYC Guidelines and Anti-Money Laundering