Module: General Practice
Q33: Which of the following statements regarding the Customer Due Diligence (CDD) for a sole proprietary firm are correct?
The Regulated Entity (RE) must perform CDD on the individual proprietor.
The RE must obtain any two of the specified documents as proof of the firm's business/activity.
An RE may, at its discretion, accept only one business document if it is satisfied that two are not available, provided it undertakes contact point verification.
The RE must obtain any two of the specified documents as proof of the firm's business/activity.
An RE may, at its discretion, accept only one business document if it is satisfied that two are not available, provided it undertakes contact point verification.
✅ Correct Answer: D
All three statements are correct.
While two documents are standard, REs can accept one with contact point verification.
This flexibility in proprietorship CDD is a nuance tested in RBI KYC Guidelines MCQs.
While two documents are standard, REs can accept one with contact point verification.
This flexibility in proprietorship CDD is a nuance tested in RBI KYC Guidelines MCQs.