A solicitor knows that a client is a politically exposed person. What additional step applies under the Money Laundering Regulations 2017?
Answer and explanation
Correct answer: B. Enhanced due diligence, including senior management approval and establishing source of wealth and source of funds
- Step 1: Politically exposed persons are high risk.
- Step 2: The firm must apply enhanced measures and monitor the relationship on an ongoing basis.
Answer
Enhanced due diligence, including senior management approval and establishing source of wealth and source of funds.
Why not the others: Standard due diligence is not enough; acting is permitted with enhanced measures; the Law Society is not the reporting body.
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