Banking · KYC and AML

Statement 1: The Money Laundering process traditionally consists of three distinct stages known as Placement, Layering, and Integration, where Placement involves moving the illegal funds into the formal financial system, Layering involves complex transactions to hide the audit trail, and Integration involves making the money appear as legitimate wealth. Statement 2: For the purpose of KYC, a 'Customer' is defined not just as a person who maintains an account with the bank, but also includes any person on whose behalf the account is maintained (i.e., the beneficial owner), beneficiaries of transactions conducted by professional intermediaries, and any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank. Statement 3: In the regulatory framework for Digital Banking Units (DBUs), the RBI has mandated that all onboarding must be 100 percent paperless and must utilize the Central KYC Records Registry (CKYCR) to verify customer details if the customer is already registered elsewhere. Based on the statements provided above regarding the KYC/AML framework, which specific statement accurately identifies the inclusive nature of the definition of a 'Customer' in the banking context?