An overseas student, Mr. John, opens an NRE account in India. During the first quarter, he receives the following wire transfers from his father in the UK: - January: 4,000 GBP (Exchange rate: 1 GBP = 110 INR) - February: 3,000 GBP (Exchange rate: 1 GBP = 112 INR) - March: 5,000 GBP (Exchange rate: 1 GBP = 115 INR) The bank's internal AML policy requires an automatic 'Enhanced Due Diligence' (EDD) flag for any student account where the total quarterly inward remittance exceeds 10,00,000 INR. Calculate the total INR received and determine if the EDD flag should be triggered.

Ms. Fatima opens a current account for her new startup. Initially, the bank performs a physical verification of her home-office to substitute a missing second business proof document. Later, the account starts receiving high-value international wire transfers from Dubai and Singapore. The bank's AML system flags these transactions because the profile was domestic. The Compliance Officer asks Ms. Fatima to provide copies of the service contracts and subsequently updates her risk profile from 'Low' to 'Medium'. Which of the following actions by the bank was a direct application of the 'Risk-Based Approach'?

Statement 1: Under the Prevention of Money Laundering Act (PMLA), the definition of 'Proceeds of Crime' has been broadened to reach ultimate beneficiaries of illegal activities. Statement 2: For accounts of 'Sole Proprietary firms,' the bank must obtain two documents in the name of the firm as proof of business. In cases where the proprietor is unable to provide two such documents, the bank has the discretion to accept only one document, provided the bank conducts a physical verification of the business premises and prepares a 'Contact Point Verification' (CPV) report. Statement 3: 'Beneficial Ownership' in a Partnership firm is defined as a natural person who owns more than 10 percent of the capital or profits of the firm. Statement 4: For 'Non-Face-to-Face' (NF2F) customers onboarded through digital channels other than V-CIP, the RBI limits the total balance to one lakh rupees. Based on the detailed statements above, which statement correctly identifies the regulatory requirements for onboarding a 'Sole Proprietary' business when the owner has only one business proof document?