Political Exposed Person (PEP) Definition Quiz
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Questions and Answers

Which of the following is NOT an example of a Politically Exposed Person (PEP) according to the Dutch definition?

  • A Governor of a central bank (correct)
  • A Member of the Parliament
  • A Member of the executive board of a political party
  • A Mayor of a city

    • According to the Financial Action Task Force, when does a person cease to be a Politically Exposed Person (PEP)?

  • It depends on the financial institution, company or profession (correct)
  • Never
  • After a fixed period of 10 years
  • After a fixed period of 5 years

    • What is the primary purpose of including family members in the PEP definition?

  • To provide financial support to family members of PEPs
  • To alert financial institutions and organizations to potential risks (correct)
  • To ensure that family members of PEPs are also held accountable
  • To prevent family members of PEPs from being appointed as PEPs

    • Who are considered as close associates of a PEP?

    <p>People with no family ties but have close relationships with a PEP</p> Signup and view all the answers

    Which of the following is NOT a common misconception about PEPs?

    <p>PEPs are not subject to the same financial regulations as ordinary citizens</p> Signup and view all the answers

    What is the primary reason for conducting a PEP investigation?

    <p>To uncover any potential financial crimes involving a PEP</p> Signup and view all the answers

    What is the primary reason why PEPs are considered a higher risk in the Know Your Customer field?

    <p>PEPs' positions of power can potentially be abused for the commission of money laundering and related crimes</p> Signup and view all the answers

    Which FATF recommendations specifically address the risks posed by PEPs?

    <p>Recommendations 12 and 22</p> Signup and view all the answers

    What is the main purpose of the FATF's PEP requirements?

    <p>To prevent financial system abuse, corruption, and bribery</p> Signup and view all the answers

    What does the FATF recommend regarding denying business relationships with PEPs?

    <p>Denying a business relationship with a PEP without an unacceptable risk underlying it violates the letter and spirit of the FATF recommendation</p> Signup and view all the answers

    Which of the following is NOT a potential crime that PEPs may be involved in, according to the FATF?

    <p>All of the above are potential crimes that PEPs may be involved in</p> Signup and view all the answers

    What does the FATF do in relation to PEPs?

    <p>The FATF regulates the standards and recommendations to address Financial Economic Crime internationally</p> Signup and view all the answers

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