A compliance officer is reviewing an institutional banking prospect proposal for a new foreign entity that is a multinational business but headquartered in a country where most businesses are state…

The correct answer is A. Politically exposed persons (PEPs) C. Anti-bribery and corruption risk. The review should prioritize politically exposed persons (PEPs) risk, as state ownership increases the likelihood of political connections, and anti-bribery and corruption risk, since such environments may have higher exposure to corrupt practices and misuse of influence.

Risks and Methods of Money Laundering and Terrorist Financing

Question

A compliance officer is reviewing an institutional banking prospect proposal for a new foreign entity that is a multinational business but headquartered in a country where most businesses are state- owned. Which risks should be prioritized in the review? (Choose two.)

Options

APolitically exposed persons (PEPs)
BCapital flight risk
CAnti-bribery and corruption risk
DTax evasion

How the community answered

(44 responses)

A
73% (32)
B
11% (5)
D
16% (7)

Explanation

The review should prioritize politically exposed persons (PEPs) risk, as state ownership increases the likelihood of political connections, and anti-bribery and corruption risk, since such environments may have higher exposure to corrupt practices and misuse of influence.

Topics

#politically exposed persons#anti-bribery#corruption risk#state-owned enterprises

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