Acams Exam CKYCA Topic 3 Question 7 Discussion

Actual exam question for Acams's CKYCA exam

Question #: 7
Topic #: 3

A politically exposed person (PEP) is eager to open a private account with an international bank. In addition to performing the normal CDD, which measure should be required from the AML officer?

AConduct enhanced ongoing monitoring of the business relationship each quarter.

BObtain senior management approval for establishing such business relationships.

CContact law enforcement, as PEPs pose enhanced risks to an institution.

DMake a note of a PEP business relationship and file a suspicious transaction report to the local financial intelligence unit.

Show Suggested Answer

Suggested Answer: B

FATF requires that before establishing a business relationship with a PEP, financial institutions must obtain senior management approval, along with applying enhanced due diligence measures such as verifying the source of wealth and funds.

by Glory at Oct 28, 2025, 06:08 AM

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Marjory

3 days ago

Hmm, this is a tricky one. I'd say the best approach is to go with option B and get senior management approval. That seems like the most prudent way to handle a PEP relationship and mitigate any potential risks to the institution.

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Noah

9 days ago

I'm a bit confused on this one. Is option C the right answer? I know PEPs can pose risks, but I'm not sure if contacting law enforcement is the right step here. Maybe the enhanced ongoing monitoring in option A would be better?

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Bok

14 days ago

I think the key here is that a PEP poses enhanced risks, so the AML officer should be required to obtain senior management approval for establishing the business relationship. That seems like the most appropriate measure to take.

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