Module: General Practice
Q18: Which of the following statements regarding the 'Designated Director' and 'Principal Officer' are correct?
The 'Principal Officer' is an officer at the management level responsible for ensuring compliance, monitoring transactions, and reporting information.
The 'Designated Director' is nominated by the Board of the Regulated Entity (RE) to ensure overall compliance with Chapter IV of the Prevention of Money-Laundering (PML) Act.
A Regulated Entity (RE) is explicitly prohibited from nominating the 'Principal Officer' as the 'Designated Director'.
The 'Designated Director' is nominated by the Board of the Regulated Entity (RE) to ensure overall compliance with Chapter IV of the Prevention of Money-Laundering (PML) Act.
A Regulated Entity (RE) is explicitly prohibited from nominating the 'Principal Officer' as the 'Designated Director'.
✅ Correct Answer: D
All three statements are correct.
The Principal Officer handles operations, while the Designated Director handles statutory compliance.
The prohibition on holding both roles is a specific detail often found in RBI KYC Guidelines MCQs.
The Principal Officer handles operations, while the Designated Director handles statutory compliance.
The prohibition on holding both roles is a specific detail often found in RBI KYC Guidelines MCQs.