A financial institution has expanded its scope of services so that it is attracting the business of politically exposed persons (PEPs) who had previously never been part of the customer base. Which tw

Question

Options

• AConduct enhanced ongoing monitoring of the business relationship
• BExpedite due diligence when a PEP is pre-approved by a member of senior management
• CObtain appropriate senior management approval for establishing a business relationship with a
• DTake adequate measures to establish the source of wealth and source of funds which are

• A
  73% (30)
• B
  17% (7)
• C
  10% (4)

Explanation

According to the Anti-Money Laundering Specialist (the 6th edition) resources, PEPs are individuals who are or have been entrusted with prominent public functions, such as heads of state, senior politicians, senior government, judicial or military officials, senior executives of state- owned corporations, or important political party officials. PEPs pose a higher risk of money laundering and corruption due to their position and influence. Therefore, financial institutions should apply enhanced due diligence and ongoing monitoring measures when dealing with PEPs Conducting enhanced ongoing monitoring of the business relationship to detect and report any suspicious transactions or activities. This may involve more frequent reviews, higher-level approvals, or increased documentation of the transactions and the rationale behind them. Taking adequate measures to establish the source of wealth and source of funds which are involved in the business relationship or occasional transaction. This may involve verifying the origin, legitimacy, and purpose of the funds, as well as the economic activities and assets of the PEP.

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