New SIDBI Grade A New Batch Starts on Nov 18

    Register

    Question

    Which of the following risk assessment measures is required by Regulated Entities (REs) for monitoring and managing money laundering (ML) and terrorist financing (TF) risks?  

    A Conducting customer surveys every two years Correct Answer Incorrect Answer
    B Implementing a Risk-Based Approach (RBA) Correct Answer Incorrect Answer
    C Verifying customer references Correct Answer Incorrect Answer
    D Conducting market analysis on customer products Correct Answer Incorrect Answer
    E Outsourcing customer due diligence (CDD) Correct Answer Incorrect Answer

    Solution

    REs are mandated to implement a Risk-Based Approach (RBA) to identify , assess, and manage ML and TF risks effectively. This involves evaluating risks associated with different customers, products, and geographical areas.  

    Practice Next

    Relevant for Exams: