Module: | Capital Adequacy, Basel Norms & Monetary Policy
Q22: According to the Customer Acceptance Policy, how should a bank handle a situation where an existing KYC-compliant customer desires to open another account or avail of a new product?
1. The bank must conduct a fresh Customer Due Diligence (CDD) exercise for the new account.
2. The bank must verify the customer's identity again using a third-party auditor.
3. There is no need for a fresh CDD exercise, as far as identification of the customer is concerned.
4. The CDD procedure should be applied at the Unique Customer Identification Code (UCIC) level.
2. The bank must verify the customer's identity again using a third-party auditor.
3. There is no need for a fresh CDD exercise, as far as identification of the customer is concerned.
4. The CDD procedure should be applied at the Unique Customer Identification Code (UCIC) level.
✅ Correct Answer: C
The bank shall apply the CDD procedure at the UCIC level.
Thus, if an existing KYC-compliant customer of a bank desires to open another account... there shall be no need for a fresh CDD exercise as far as identification of the customer is concerned.
Thus, if an existing KYC-compliant customer of a bank desires to open another account... there shall be no need for a fresh CDD exercise as far as identification of the customer is concerned.