Cams Exam Quesiton No 13

Question No 13:

Which statement is true regarding the risk of Politically Exposed Persons (PEPs)?

A. PEPs provide access to third parties on whom the financial institution has not conducted sufficient due diligence.
B. PEPs have significantly greater exposure to the politically corrupt funds, including accepting bribes or misappropriating government funds.
C. PEPs are foreign customers who inherently present additional risk as they are engaged in cross-border transactions.
D. PEPs generally do not pose enhanced risks to an institution due to their political standing; rather, PEPs increase the prestige of an institution.

Answer: B