Module: General Practice
Q44: Which of the following statements regarding "Politically Exposed Persons" (PEPs) are correct?
PEPs are defined as individuals entrusted with prominent public functions by a foreign country, such as Heads of State, senior politicians, or senior government officers.
The definition of PEPs includes individuals entrusted with prominent public functions within India.
If an existing customer is subsequently identified as a PEP, the Regulated Entity must obtain senior management's approval to continue the business relationship.
The definition of PEPs includes individuals entrusted with prominent public functions within India.
If an existing customer is subsequently identified as a PEP, the Regulated Entity must obtain senior management's approval to continue the business relationship.
✅ Correct Answer: A
Statement 1 and 3 are correct.
Statement 2 is incorrect because the definition specifically refers to foreign public functions.
This specific definition of PEPs is a common trick in RBI KYC Guidelines MCQs.
Statement 2 is incorrect because the definition specifically refers to foreign public functions.
This specific definition of PEPs is a common trick in RBI KYC Guidelines MCQs.