Acams Advanced-CAMS-Audit Exam - Topic 3 Question 33 Discussion

Question

During the ongoing due diligence process the company becomes aware that the customer is holding personal assets for a politically exposed person (PEP). What should the auditor recommend to enhance the control environment for this customer relationship? (Select Three.)

Quentin · Accepted Answer

C) Designate the account as a PEP-account. and D) Conduct enhanced due diligence and enhanced ongoing monitoring of the customer relationship. and E) Review and document the details of the customer s asset-holding arrangement.

Quentin · Answer

A) File a suspicious activity report as the previous risk rating was not correct.

Quentin · Answer

B) Deploy automated monitoring toots to efficiently peruse the customer's KYC information and assure that the customer's KYC risk rating is correct.

Quentin · Answer

F) Review the customer risk profile every two years as with any other customers.
  C: Designating the account as a PEP-account triggers additional monitoring and controls as PEPs inherently pose higher risks.
  D: Enhanced due diligence (EDD) and ongoing monitoring are essential for PEPs to track their financial activities closely and address any anomalies.
  E: Documenting the details of the asset-holding arrangement provides clarity on the customer's profile and any associated risks.