Module: General Practice
Q3: Which of the following statements regarding the compliance requirements for foreign branches/subsidiaries of Indian Regulated Entities (REs) are correct?
If KYC/AML standards vary between the RBI and the host country, the branch must adopt the more stringent of the two regulations.
The rule requiring the adoption of the "more stringent" regulation does not apply to accounts designated as 'small accounts'.
If host country laws prohibit the implementation of specific RBI KYC/AML guidelines, the matter must be brought to the notice of the Reserve Bank of India.
The rule requiring the adoption of the "more stringent" regulation does not apply to accounts designated as 'small accounts'.
If host country laws prohibit the implementation of specific RBI KYC/AML guidelines, the matter must be brought to the notice of the Reserve Bank of India.
✅ Correct Answer: D
All three statements are correct.
Foreign branches/subsidiaries of REs must follow the stricter of RBI or host country rules.
An exception to this "more stringent" rule exists for 'small accounts'. This ensures robust Anti-Money Laundering (AML) compliance across borders, a frequent topic in RBI KYC Guidelines MCQs.
Foreign branches/subsidiaries of REs must follow the stricter of RBI or host country rules.
An exception to this "more stringent" rule exists for 'small accounts'. This ensures robust Anti-Money Laundering (AML) compliance across borders, a frequent topic in RBI KYC Guidelines MCQs.