Q46: What is the rule for Regulated Entities (REs) regarding professional intermediaries who are bound by client confidentiality?

REs shall not open accounts of such professional intermediaries who are bound by any client confidentiality that prohibits disclosure of the client details to the RE.

REs may open 'pooled' accounts for these intermediaries, provided the intermediary is regulated.

REs must rely on the 'customer due diligence' (CDD) done by such intermediaries, as they are regulated.

REs must obtain the client details from the intermediary within 30 days of opening the account.

✅ Correct Answer: A

REs shall not open accounts for intermediaries if confidentiality rules prevent client disclosure.

This prohibition safeguards against anonymous beneficial owners, a key concept in RBI KYC Guidelines MCQs.

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Bank Promotion Exam Guide

Q46: What is the rule for Regulated Entities (REs) regarding professional intermediaries who are bound by client confidentiality?

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