ACAMS Beneficial Ownership and Politically Exposed Persons (PEPs)

Question 1

Under FinCEN's Customer Due Diligence (CDD) Rule, what ownership threshold triggers beneficial ownership identification for legal entity customers?

Accepted Answer

25% or more

Answer

10% or more

Answer

15% or more

Answer

51% or more

Question 2

In addition to identifying equity owners, FinCEN's beneficial ownership rule also requires identification of which individual?

Accepted Answer

A single person with significant responsibility to control, manage, or direct the entity

Answer

The entity's largest creditor

Answer

All directors of the company

Answer

The entity's registered agent

Question 3

Which of the following is NOT considered a Politically Exposed Person (PEP) under FATF guidance?

Accepted Answer

A mid-level tax administrator with no policy-making authority

Answer

A head of state

Answer

A senior military official

Answer

A senior executive of a state-owned enterprise

Question 4

Under FATF Recommendation 12, for how long after an individual leaves a prominent public position should enhanced due diligence measures continue?

Accepted Answer

A risk-based period, often cited as 12–18 months or longer

Answer

Six months

Answer

One year

Answer

PEP status ends immediately upon leaving office

Question 5

Which category of PEP is defined as 'domestic PEP' under US AML rules?

Accepted Answer

Senior officials of US federal, state, or local government entrusted with prominent public functions

Answer

Senior officials of foreign governments only

Answer

Any US citizen who works for a foreign government

Answer

Relatives of foreign PEPs residing in the US

Question 6

Which of the following best describes the 'layering' risk associated with complex beneficial ownership structures?

Accepted Answer

Multiple layers of legal entities obscuring the true natural person ultimately owning or controlling assets

Answer

Difficulty in processing wire transfers efficiently

Answer

Increased regulatory capital requirements for banks

Answer

The use of nominees to reduce corporate tax liability