What is a Political Exposed Person (PEP)?

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Which of the following is NOT a government position that fits into the definition of a Politically Exposed Person?

Member of a supreme court

Minister of Education (correct)

Head of state

Ambassador

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

To ensure transparency in financial transactions

To conduct thorough investigations

To prevent potential risks from close family ties (correct)

To monitor political connections

What is the approach recommended by the Financial Action Task Force for treating former PEPs?

Prescribed time limit

Risk-based approach (correct)

Time-based approach

Fixed period of 5 years

What was the outcome of the Luanda Leaks investigation?

Billions of dollars were funneled away from Angolan government funds Signup and view all the answers

What is the term used to describe relationships outside of family, such as a boyfriend or girlfriend, in the context of PEPs?

Close associates Signup and view all the answers

What is the definition of a PEP not clearly defined?

Time period for which a person remains a PEP Signup and view all the answers

What is the name of the organization that conducted the investigation into Isabel dos Santos and her associates?

International Consortium of Investigative Journalists Signup and view all the answers

What is the term used to describe the act of diverting public funds for personal gain?

Embezzlement Signup and view all the answers

Why is it important to conduct thorough research on PEPs and their relationships?

To prevent potential risks from close relationships Signup and view all the answers

What is the significance of the Luanda Leaks investigation in the context of PEPs?

It led to widespread discussions about corruption and accountability Signup and view all the answers

What is the primary reason why Political Exposed Persons are considered an increased risk in the Know Your Customer field?

They are in positions that can be potentially abused for money laundering and related crimes Signup and view all the answers

What is the acronym for the intergovernmental organization that regulates standards and recommendations for addressing Financial Economic Crime?

FATF Signup and view all the answers

What is the term used to describe a person who holds or has held a prominent public function?

Political Exposed Person Signup and view all the answers

Why are FATF Recommendations 12 and 22 important in relation to Political Exposed Persons?

They require countries to ensure that financial institutions take measures to prevent abuse and detect potential abuse Signup and view all the answers

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

To prevent financial system and society in general against abuse, corruption, and bribery Signup and view all the answers

What happens when a business relationship with a PEP is denied without an unacceptable risk underlying it?

It violates the letter and spirit of the FATF recommendation Signup and view all the answers

What is the primary concern related to Political Exposed Persons and financial crimes?

They are in positions that can be potentially abused for money laundering and related crimes Signup and view all the answers

What is the relationship between Political Exposed Persons and terrorist financing?

PEPs are in positions that can be potentially abused for activities related to terrorist financing Signup and view all the answers

What is the definition of a Political Exposed Person according to the Financial Action Task Force?

A person who holds or has held a prominent public function Signup and view all the answers

What is the goal of the FATF's recommendations related to Political Exposed Persons?