CAMS · Question #992
It is essential to identify any "family members" or "close associates" of politically exposed persons (PEPs) as part of the KYC/CDD process because they could be:
The correct answer is D. used as intermediaries to facilitate bribery or corruption or to conceal the illicit wealth of the PEP. D: "Family members and close associates of PEPs are often used as intermediaries to launder the proceeds of corruption or conceal illicit assets."(CAMS 6th Edition, Enhanced Due Diligence for PEPs; FATF Guidance on PEPs)
Question
It is essential to identify any "family members" or "close associates" of politically exposed persons (PEPs) as part of the KYC/CDD process because they could be:
Options
- Aexecuting cross-border transactions for their own business which is not commensurate to the
- Bin a position to provide more information regarding the PEP's whereabouts and hidden properties.
- Ctravelling to offshore jurisdictions often on holiday which exposes them to higher risks for AML.
- Dused as intermediaries to facilitate bribery or corruption or to conceal the illicit wealth of the PEP.
How the community answered
(23 responses)- A4% (1)
- B4% (1)
- C13% (3)
- D78% (18)
Explanation
D: "Family members and close associates of PEPs are often used as intermediaries to launder the proceeds of corruption or conceal illicit assets."(CAMS 6th Edition, Enhanced Due Diligence for PEPs; FATF Guidance on PEPs)
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