Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam 2025 - Free CAMS Practice Questions and Study Guide

FATF Recommendation 6 specifically addresses the need for enhanced measures when dealing with politically exposed persons (PEPs). The recommendation emphasizes that financial institutions should have appropriate policies and procedures in place to identify and mitigate the risks associated with PEPs due to their potential exposure to corruption and bribery.

Under this recommendation, institutions must obtain senior management approval for establishing business relationships with PEPs. This is a crucial step to ensure that the institution acknowledges the heightened risk that these clients present. Additionally, ongoing enhanced monitoring of PEP accounts is required. This monitoring may encompass more frequent reviews of transactions to detect any unusual or suspicious activity that could indicate money laundering or related financial crimes.

This emphasis on senior management approval and continuous scrutiny is vital for maintaining the integrity of the financial system and helping safeguard it against exploitation by those in positions of power. The other options do not align with the FATF's requirements for ensuring an effective risk management approach regarding PEPs, which is why they fall short of what Recommendation 6 stipulates.