Definition of Political Exposed Person (PEP)

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Who would NOT be considered a Politically Exposed Person based on the text?

A Judge in a supreme court

A Head of state

A Deputy minister

A Military officer (correct)

Why is it important to include family members in the PEP definition?

To create a positive image for financial institutions

To prevent them from engaging in politics

To offer them financial benefits

To identify potential money laundering risks (correct)

What type of relationships are considered close associates in the PEP definition?

Spouses of family members

Extended family members

Colleagues in the same workplace

Friends or romantic partners outside the family (correct)

How does the Financial Action Task Force recommend treating PEP status?

Using a risk-based approach Signup and view all the answers

What industry was Isabel dos Santos accused of trying to control using her political connections?

Telecommunications Signup and view all the answers

What was the main focus of the Luanda Leaks investigation involving Isabel dos Santos?

Money laundering Signup and view all the answers

Which of the following was NOT a consequence of the Luanda Leaks investigation?

No impact on Isabel dos Santos or her family Signup and view all the answers

What was one of the main concerns arising from the financial records of Isabel dos Santos and her family?

Possibly unethical transactions Signup and view all the answers

What was the significance of the Luanda Leaks investigation for international companies associated with Isabel dos Santos?

Raised concerns about their involvement in unethical deals Signup and view all the answers

What is a key reason why PEPs are considered at higher risk for money laundering and related crimes?

They hold or have held prominent public functions. Signup and view all the answers

Why does the FATF require countries to ensure measures to prevent financial system abuse by PEPs?

To protect the financial system and society from PEP abuse. Signup and view all the answers

How does denying a business relationship with a PEP without any unacceptable risk violate FATF recommendations?

By not considering the spirit of the FATF recommendation. Signup and view all the answers

Which FATF recommendations emphasize measures to prevent financial system abuse by PEPs?

Recommendations 12 and 22 Signup and view all the answers

How do PEP requirements defined by the FATF aim to address PEP-related risks?

By preventing abuse, corruption, and bribery. Signup and view all the answers

What is the intent behind the FATF's preventive PEP requirements?

To prevent financial system abuse, corruption, and bribery by PEPs. Signup and view all the answers

Definition of Political Exposed Person (PEP)

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