Q1: When a branch or majority-owned subsidiary of a bank located abroad faces a variance between the KYC/AML standards prescribed by the RBI and the host country regulator, which standard must it adopt?

The standard prescribed by the host country regulator in all cases

The standard prescribed by the RBI in all cases

The more stringent regulation of the two

The standard mutually agreed upon by the branch and the local regulator

✅ Correct Answer: C

In case there is a variance in KYC / AML standards prescribed by the RBI and the host country regulators, branches / subsidiaries of the bank shall adopt the more stringent regulation of the two.

This is a fundamental concept for the IIBF AML KYC Exam 2026.

Next (Q2) → Which of the following statements correctly d... 📚 Back to General Practice

Bank Promotion Exam Guide

Q1: When a branch or majority-owned subsidiary of a bank located abroad faces a variance between the KYC/AML standards prescribed by the RBI and the host country regulator, which standard must it adopt?

🔄 More from General Practice: