Module: General Practice
Q26: Which of the following statements regarding a Regulated Entity's (RE's) reliance on a third party for Customer Due Diligence (CDD) are correct?
The RE's reliance is permitted only if the third party is not based in a country or jurisdiction assessed as high risk.
The ultimate responsibility for customer due diligence and undertaking enhanced due diligence measures always remains with the RE.
The RE must obtain all necessary information and certified copies of documents from the third party without delay.
The ultimate responsibility for customer due diligence and undertaking enhanced due diligence measures always remains with the RE.
The RE must obtain all necessary information and certified copies of documents from the third party without delay.
✅ Correct Answer: D
All three statements are correct.
While reliance on third parties is allowed under strict conditions, the ultimate responsibility remains with the RE.
This liability clause is important for RBI KYC Guidelines MCQs.
While reliance on third parties is allowed under strict conditions, the ultimate responsibility remains with the RE.
This liability clause is important for RBI KYC Guidelines MCQs.