A person who does not have an account-based relationship with a bank but undertakes transactions with a bank is called:

a. shadow customer
b. walk-in-customer
c. money mule
d. customer

KYC's guidelines take into account the recommendations of an international Financial Action Task Force, on which of the following?

(a) on anti-money laundering standards
(b) on combating financing of terrorism
(c) on manipulation of economic offences

KYC policy of the banks, as per RBI directives should provide for:

(a) customer acceptance policy
(b) customer identification procedure
(c) monitoring of transactions
(d) risk management

For KYC policy, the customer has been defined as a:

(a) person that is engaged in a financial transaction or activity with a regulated entity
(b) an entity that is engaged in a financial transaction or activity with a regulated entity
(c) a person on whose behalf the person who is engaged in the transaction or activity is acting:

Under KYC guidelines, where a customer does not comply with the KYC requirement, his account can be closed.

(a) decision to close the account should be taken at a high level
(b) account should closed after giving due notice to the customer
(c) account should be closed after explaining the reasons to the customer:

Which of the following customer does not fall under low-risk category under KYC guidelines:

a. Salaried employees
b. Persons from lower strata of the society
c. Govt. departments
d. Trusts

Which of the following customers fall under the high risk category customers from KYC purposes:

(a) politically exposed persons of foreign origin
(b) companies having close shareholding
(c) firms having sleeping partners
(d) high net worth individuals.

As per KYC guidelines, the banks cannot have correspondent arrangements with Shell Banks. For this purpose, the 'Shell Bank' mean:

a. a bank having no existence but on paper only
b. a bank incorporated outside India and having a branch in India
c. a bank incorporated in a country where it has no existence and it is not regulated by a regulating authority
d. a bank incorporated outside India and banned by UNO to have operations other than in the country of incorporation