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    Question

    Consider the statements about Politically-Exposed

    Persons (PEPs): 1. Ministry of Finance recently updated KYC norms for PEPs. 2. PEPs are the individuals who are entrusted with prominent public functions by a foreign country. 3. It includes the heads of states/governments and senior politicians only. Which of the statements given above is/are correct?
    A 1 only Correct Answer Incorrect Answer
    B 2 only Correct Answer Incorrect Answer
    C 1 and 2 only Correct Answer Incorrect Answer
    D 2 and 3 only Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India (RBI) recently updated Know Your Customer (KYC) norms for politically exposed persons (PEPs) who transact with regulated entities (REs), seeking to comply with the recommendations of the Financial Action Task Force (FATF). In the amended KYC master direction, the central bank defines PEPs as "individuals who are or have been entrusted with prominent public functions by a foreign country, including the heads of states/governments, senior politicians, senior government or judicial or military officers, senior executives of state-owned corporations, and important political party officials".

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