n NISM Certifications
X NISM Series X
Medium

Which transactions attract enhanced due diligence by reporting entities?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Large imports/remittances

  2. B

    Foreign exchange transactions above threshold

  3. C

    Cash withdrawals/deposits exceeding a limit

  4. All of the above

    Correct answer

Why this is the answer

These transactions are scrutinized more intensely to prevent money laundering and illicit activities.

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