A remittance company received a money order from a senior political figure m the Philippines to transfer a large sum of money to a charity group in the Philippines. A review of the charity group…

Question

Options

• AThe sender is a Political Exposed Person (PEP) and should be subject to enhanced due diligence
• BA large sum sent by money order to a charity
• CThere is no risk relating of terrorism financing when the charity group is operating legitimately in
• DThere is a link between the charity group and a known terrorist group

• A
  3% (1)
• B
  7% (2)
• C
  10% (3)
• D
  79% (23)

Explanation

A key risk indicator associated with terrorism financing is the link between the charity group and a known terrorist group. This indicates that the funds transferred to the charity group may be used to support the terrorist group's activities, such as recruitment, training, propaganda, or attacks. Charities are often vulnerable to abuse by terrorist financiers, as they may operate in high-risk areas, have access to large amounts of cash, and enjoy public trust and legitimacy. Therefore, financial institutions (FIs) should conduct due diligence on the charity group, its directors, its beneficiaries, and its sources and uses of funds, and monitor the transactions for any red flags, such as unusual patterns, amounts, or destinations. FIs should also comply with the relevant sanctions and regulatory requirements, and report any suspicious or unusual activity to the

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