Question

What is the primary objective of KYC (Know Your Customer) guidelines for businesses, including insurers?

a.

To increase the complexity of financial transactions

b.

To provide opportunities for identity theft

c.

To prevent identity theft, financial fraud, and money laundering

d.

To encourage criminal elements to use financial institutions

Posted under IC38 Life Insurance Agent Exam

Answer: (c).To prevent identity theft, financial fraud, and money laundering Explanation:KYC guidelines are primarily designed to prevent identity theft, financial fraud, and money laundering activities by ensuring that businesses, including insurers, verify the identity of their clients.

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Q. What is the primary objective of KYC (Know Your Customer) guidelines for businesses, including insurers?
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