Module: General Practice
Q4: As per the latest amendments to the Master Direction on KYC, identifying a customer as a "Money Mule" requires banks to check for specific "Red Flag Indicators." Which of the following is considered a high-risk indicator for a potential mule account?
✅ Correct Answer: B
🎯 Quick Answer:
Sudden high velocity followed by immediate withdrawal. Concept: Mule Indicators. The Pattern: Mules are used to "pass-through" stolen money. The money enters and leaves instantly (to prevent the bank from freezing it). Red Flag: A previously low-activity account suddenly receiving large sums that are immediately siphoned off (via ATM cash out or further transfer), leaving the balance at zero or minimum, is the classic "Mule" signature.