What is a Political Exposed Person (PEP)?
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Questions and Answers

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?

<p>Billions of dollars were funneled away from Angolan government funds (D)</p> 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?

<p>Close associates (C)</p> Signup and view all the answers

What is the definition of a PEP not clearly defined?

<p>Time period for which a person remains a PEP (B)</p> Signup and view all the answers

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

<p>International Consortium of Investigative Journalists (C)</p> Signup and view all the answers

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

<p>Embezzlement (A)</p> Signup and view all the answers

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

<p>To prevent potential risks from close relationships (D)</p> Signup and view all the answers

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

<p>It led to widespread discussions about corruption and accountability (D)</p> 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?

<p>They are in positions that can be potentially abused for money laundering and related crimes (B)</p> Signup and view all the answers

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

<p>FATF (D)</p> Signup and view all the answers

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

<p>Political Exposed Person (D)</p> Signup and view all the answers

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

<p>They require countries to ensure that financial institutions take measures to prevent abuse and detect potential abuse (C)</p> Signup and view all the answers

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

<p>To prevent financial system and society in general against abuse, corruption, and bribery (D)</p> Signup and view all the answers

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

<p>It violates the letter and spirit of the FATF recommendation (D)</p> Signup and view all the answers

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

<p>They are in positions that can be potentially abused for money laundering and related crimes (C)</p> Signup and view all the answers

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

<p>PEPs are in positions that can be potentially abused for activities related to terrorist financing (B)</p> Signup and view all the answers

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

<p>A person who holds or has held a prominent public function (D)</p> Signup and view all the answers

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

<p>To prevent financial system and society in general against abuse, corruption, and bribery (B)</p> Signup and view all the answers

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