Which of the following is not a High Risk Customer?
A. Non resident customers
B. HNI customers
C. Bullion Dealers
D. Foreign Tour and Travel service provider
E. None of the above
Answer (2)
The most likely answer for which of the following is not a high-risk customer is D: Foreign Tour and Travel service provider. This group typically carries a lesser risk profile compared to Non-resident customers, HNI customers, and Bullion Dealers. Therefore, option D is where the distinction lies.
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High-risk customers are those who pose a greater risk of being involved in activities such as money laundering, fraud, or financing illegal activities. Financial institutions usually assess their customer base to identify these high-risk individuals or entities.
Let's look at each option given:
Non-resident customers (A): These customers are considered high-risk because they may be harder to identify and verify due to being located outside the country where the institution operates. They may also have different regulations governing their financial activities.
HNI customers (B): High Net Worth Individuals (HNIs) are sometimes considered high-risk because they handle a large volume of transactions. Their financial activities may attract scrutiny for potential money laundering or tax evasion.
Bullion Dealers (C): Bullion dealers are often classified as high-risk because they deal in large amounts of precious metals, which can be used for money laundering or other illegal activities.
Foreign Tour and Travel service provider (D): This option is typically not classified as high-risk in the same manner as the others. While they handle foreign currency transactions, they aren’t directly associated with high-risk financial behavior like the other options.
None of the above (E): This choice would imply all options are high-risk, but as we've assessed, (D) is the least likely to be classified as high-risk in this list.
Considering the reasons above, the correct choice is (D) Foreign Tour and Travel service provider , as it is generally not regarded as a high-risk customer compared to the other categories listed.
