12 Questions
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
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
What is the primary purpose of including family members in the PEP definition?
To alert financial institutions and organizations to potential risks
Who are considered as close associates of a PEP?
People with no family ties but have close relationships with a PEP
Which of the following is NOT a common misconception about PEPs?
PEPs are not subject to the same financial regulations as ordinary citizens
What is the primary reason for conducting a PEP investigation?
To uncover any potential financial crimes involving a PEP
What is the primary reason why PEPs are considered a higher risk in the Know Your Customer field?
PEPs' positions of power can potentially be abused for the commission of money laundering and related crimes
Which FATF recommendations specifically address the risks posed by PEPs?
Recommendations 12 and 22
What is the main purpose of the FATF's PEP requirements?
To prevent financial system abuse, corruption, and bribery
What does the FATF recommend regarding denying business relationships with PEPs?
Denying a business relationship with a PEP without an unacceptable risk underlying it violates the letter and spirit of the FATF recommendation
Which of the following is NOT a potential crime that PEPs may be involved in, according to the FATF?
All of the above are potential crimes that PEPs may be involved in
What does the FATF do in relation to PEPs?
The FATF regulates the standards and recommendations to address Financial Economic Crime internationally
Test your knowledge on the definition of Political Exposed Person (PEP) as described by the Financial Action Task Force (FATF). Learn about the increased risk associated with PEPs in the Know Your Customer field.
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