Module: General Practice
Q50: Consider the following statements:
Assertion (A) - A Regulated Entity (RE) must immediately freeze all operations in an account for which it is filing a Suspicious Transaction Report (STR).
Reason (R) - Every RE, its directors, officers, and employees must ensure that the fact of furnishing information to the Director, FIU-IND is kept confidential.
Reason (R) - Every RE, its directors, officers, and employees must ensure that the fact of furnishing information to the Director, FIU-IND is kept confidential.
✅ Correct Answer: D
Assertion A is false; REs must NOT restrict accounts solely based on filing an STR to avoid tipping off.
Reason R is true regarding confidentiality.
This logic is essential for answering RBI KYC Guidelines MCQs.
Reason R is true regarding confidentiality.
This logic is essential for answering RBI KYC Guidelines MCQs.