Q60: What action must Regulated Entities (REs) take before launching new products, business practices, or using new technologies?

They must identify and assess the Money Laundering (ML) and Terrorist Financing (TF) risks associated with them.

They must obtain a special license from the Reserve Bank of India.

They must ensure the new technology is only used for high-risk customers.

They must report these new products to the Financial Intelligence Unit - India (FIU-IND).

✅ Correct Answer: A

REs must assess ML/TF risks before launching new products or technologies.

This proactive risk management is a key directive in RBI KYC Guidelines MCQs.

Bank Promotion Exam Guide