Answer-In the context of Anti-Money Laundering and Know Your Customer (KYC) norms, how are Politically Expo...

A particularly important high-risk category is Politically Exposed Persons PEPs . PEPs are individuals who are or have been entrusted with prominent public functions in foreign countries, such as heads of state, senior politicians, senior government or judicial officials, military officials, and senior executives of state-owned corporations. Close family members and associates of PEPs are also treated as high risk due to the possibility of misuse of public office for private gain.

Question

In the context of Anti-Money Laundering and Know Your Customer (KY

C norms, how are Politically Exposed Persons (PEPs) defined, and how are their close family members treated?

A Individuals holding low-level domestic municipal positions; treated as low-risk customers

B Individuals who hold prominent public functions in foreign countries; their close family members are also treated as high-risk

C Individuals who manage domestic private sector tech companies; treated as medium-risk customers

D Individuals who have retired from non-governmental organizations; treated as exempt from KYC

E Individuals who operate cross-border logistics businesses; treated as standard-risk customers

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