Q17: Regarding "Money Mules," if it is established that an account opened and operated is that of a Money Mule, but the concerned bank failed to file a Suspicious Transaction Report (STR), what is the specific regulatory consequence?

The bank is liable for a fine of ₹1 Lakh per account.

The bank shall be deemed to have not complied with the KYC Directions.

The branch manager shall be immediately suspended.

The bank must close all accounts in that branch.

✅ Correct Answer: B

If a Money Mule account is found and no STR was filed, the bank shall be deemed to have not complied with the KYC Directions.

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