Q64: When a Regulated Entity (RE) engages with an unregulated entity in the process of a wire transfer, what must the agreement or arrangement with that entity clearly include?

A clause that transfers all liability for compliance to the unregulated entity.

The obligations under the wire transfer instructions and a termination clause.

A provision for the unregulated entity to conduct its own risk assessment.

A lower threshold for reporting suspicious transactions.

✅ Correct Answer: B

Agreements with unregulated entities must specify obligations and include a termination clause.

This contractual safeguard is important for RBI KYC Guidelines MCQs.

Bank Promotion Exam Guide