1. Which of the following best describes the risk category of Politically Exposed Persons (PEPs)?
Low Risk
Medium Risk
Exempt from KYC
High Risk
Explanation:
PEPs are individuals who are or have been entrusted with prominent public functions (e.g., Heads of State, politicians). Due to potential involvement in bribery and corruption, they are classified as High Risk customers requiring Enhanced Due Diligence (EDD).