Module: General Practice
Q61: Which of the following statements regarding correspondent banking relationships are correct?
Regulated Entities (REs) shall not enter into or continue a correspondent banking relationship with a shell bank.
REs must ensure that their respondent banks do not permit their accounts to be used by shell banks.
In the case of 'payable-through-accounts', the correspondent bank must be satisfied that the respondent bank has conducted Customer Due Diligence (CDD) on customers having direct access to its accounts.
REs must ensure that their respondent banks do not permit their accounts to be used by shell banks.
In the case of 'payable-through-accounts', the correspondent bank must be satisfied that the respondent bank has conducted Customer Due Diligence (CDD) on customers having direct access to its accounts.
✅ Correct Answer: D
All three statements are correct.
REs must avoid shell banks and ensure 'payable-through-accounts' are vetted.
These international banking norms are crucial for RBI KYC Guidelines MCQs.
REs must avoid shell banks and ensure 'payable-through-accounts' are vetted.
These international banking norms are crucial for RBI KYC Guidelines MCQs.