The Popularity of FX-Trading Via Internet Platforms Has Serious Implications

question 102

Multiple Choice

The popularity of FX-trading via Internet platforms has serious implications for the applicability of traditional rules such as "Know Your Customer". Which of the following are correct?

• A) "Know Your Customer" rules cannot be applied online and banks will have to rely instead on new safeguards such as third-party authentication.
• B) "Know Your Customer" rules apply only to retail customers and are therefore irrelevant to currency trading.
• C) In practice, banks can avoid "Know Your Customer" rules by limiting online deal size to EUR 100,000.00 or equivalent.
• D) No trading should be carried out without first identifying and setting up the counterparty; this includes "Know Your Customer" procedures.

---

Definitions:

Nomothetic Approach

A methodological approach focusing on identifying general laws that apply to all individuals within a population.

Multiply Determined

Refers to phenomena or outcomes that result from several contributing factors rather than from a single cause.

Government Regulation

Rules or directives established by authorities designed to control or govern conduct within a particular domain.

Organizations

Entities formed for a specific purpose, comprising of individuals working together under a defined structure to achieve common goals.