Module: General Practice
Q4: Which of the following statements regarding the identification of a "Beneficial Owner" (BO) are correct?
For a company, "Controlling ownership interest" is defined as ownership of or entitlement to more than 10 percent of the shares, capital, or profits.
For a partnership firm, a BO is a natural person with ownership of or entitlement to more than 10 percent of the capital or profits.
"Control" includes the right to appoint a majority of the directors or to control management or policy decisions, such as through shareholding or voting agreements.
The threshold for "Controlling ownership interest" in an unincorporated association or body of individuals is more than 25 percent.
For a partnership firm, a BO is a natural person with ownership of or entitlement to more than 10 percent of the capital or profits.
"Control" includes the right to appoint a majority of the directors or to control management or policy decisions, such as through shareholding or voting agreements.
The threshold for "Controlling ownership interest" in an unincorporated association or body of individuals is more than 25 percent.
✅ Correct Answer: A
Statements 1, 2, and 3 are correct definitions for identifying a Beneficial Owner.
Statement 1 defines the >10% threshold for companies.
Statement 4 is incorrect; the threshold for an unincorporated association or body of individuals is more than 15 percent, not 25.
Memorizing these percentages is vital for RBI KYC Guidelines MCQs.
Statement 1 defines the >10% threshold for companies.
Statement 4 is incorrect; the threshold for an unincorporated association or body of individuals is more than 15 percent, not 25.
Memorizing these percentages is vital for RBI KYC Guidelines MCQs.