Module: General Practice
Q11: Consider the following statements regarding "Shell Banks":
Assertion (A): The existence of a local agent or low-level staff in a country constitutes "physical presence" for a bank incorporated in that country.
Reason (R): A Shell Bank is defined as a bank that has no physical presence in the country of incorporation and is unaffiliated with a regulated financial group.
Reason (R): A Shell Bank is defined as a bank that has no physical presence in the country of incorporation and is unaffiliated with a regulated financial group.
✅ Correct Answer: D
Assertion A is false because "Physical presence means meaningful mind and management located within a country.
The existence simply of a local agent or low-level staff does not constitute physical presence." Reason R is the correct definition of a Shell Bank.
Shell bank definitions are often part of the IIBF AML KYC Exam 2026.
The existence simply of a local agent or low-level staff does not constitute physical presence." Reason R is the correct definition of a Shell Bank.
Shell bank definitions are often part of the IIBF AML KYC Exam 2026.