CAMS Question #440: Real Exam Question with Answer & Explanation

The correct answer is D. Senior management. Senior management bears the ultimate responsibility for approving a financial institution's relationship with a politically exposed person (PEP). The institution must ensure that appropriate measures are taken to manage the risks associated with a PEP, including conducting enhanc

Question

Who bears the ultimate responsibility for approving a financial institution's relationship with a politically exposed person?

Options

ARelationship manager
BEnhanced due diligence compliance officer
COKYC analyst
DSenior management

Explanation

Senior management bears the ultimate responsibility for approving a financial institution's relationship with a politically exposed person (PEP). The institution must ensure that appropriate measures are taken to manage the risks associated with a PEP, including conducting enhanced due diligence and applying appropriate mitigating measures. The relationship manager and the OKYC analyst may identify the risks associated with the PEP and recommend mitigating measures, but it is ultimately the responsibility of senior management to approve the relationship and ensure that the appropriate measures are taken. The enhanced due diligence compliance officer is responsible for ensuring that all due diligence requirements are met.

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