Module: General Practice
Q94: Every Reporting Entity must appoint a "Principal Officer" to manage AML compliance. Consider the following operational protocols regarding this role:
The Principal Officer (PO) acts as the central nodal officer responsible for communicating directly with the FIU-IND and furnishing information.
If a branch manager suspects a transaction, they must escalate it to the Principal Officer, who then decides whether to file an STR with the FIU-IND.
Under the "Tipping Off" prohibition, the bank is strictly forbidden from informing the customer that their transaction is being reported or investigated.
To ensure corporate oversight, the Principal Officer is legally required to obtain approval from the Board of Directors for every individual STR filed.
If a branch manager suspects a transaction, they must escalate it to the Principal Officer, who then decides whether to file an STR with the FIU-IND.
Under the "Tipping Off" prohibition, the bank is strictly forbidden from informing the customer that their transaction is being reported or investigated.
To ensure corporate oversight, the Principal Officer is legally required to obtain approval from the Board of Directors for every individual STR filed.
✅ Correct Answer: B
The correct answer is Option B. The PO communicates with FIU-IND and decides on STRs.
Tipping off is banned.
Board approval for individual STRs is not required (to ensure independence), making statement 4 incorrect.
PO duties are key in the IIBF AML KYC Exam 2026.
Tipping off is banned.
Board approval for individual STRs is not required (to ensure independence), making statement 4 incorrect.
PO duties are key in the IIBF AML KYC Exam 2026.