Q27: A bank may rely on Customer Due Diligence (CDD) done by a third party, subject to several conditions. Which of the following is NOT a valid condition for such reliance?

The bank obtains records of CDD from the third party immediately.

The third party is regulated and supervised.

The third party assumes the ultimate responsibility for the customer due diligence.

The third party is not based in a country assessed as high-risk.

✅ Correct Answer: C

The bank will have the ultimate responsibility for customer due diligence and undertaking enhanced due diligence measures, as applicable.

The other options are valid conditions.

Third-party reliance rules are tested in the IIBF AML KYC Exam 2026.

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