Which of the following conditions contribute to a politically exposed person (PEP) posing greater risk than a typical high-risk bank customer? (Select Two.)

Question

Options

• AThe family members and close associates of PEPs may be involved in illicit activities.
• BPEPs are granted unlimited credit and financial immunity under international banking regulations.
• CPEPs may exploit embassy activities to conceal bribery and corruption transactions.
• DPEPs can have illegitimate fund sources but are legally protected from having their accounts

• A
  82% (32)
• B
  5% (2)
• D
  13% (5)

Explanation

PEPs are recognized by CAMS 6th Edition and FATF as posing elevated risk due to: A . The family members and close associates of PEPs may be involved in illicit activities:"The risks extend beyond the PEP to family members and close associates, who may be used to conceal the movement of illicit funds."(CAMS 6th Edition, PEP Risk Factors; FATF Guidance) C . PEPs may exploit embassy activities to conceal bribery and corruption transactions:"PEPs may use their position or diplomatic privileges, such as embassy operations, to disguise or facilitate the movement of illicit funds."(CAMS 6th Edition, Corruption and PEP Risks)

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