AI Summary of 37. Enhanced customer due diligence - politically exposed persons.
This section outlines the responsibilities of designated persons in assessing whether customers or associated individuals are politically exposed persons (PEPs) or their immediate relatives or close associates. Due diligence must be conducted prior to establishing business relationships or executing transactions, especially regarding life assurance policies.
Enhanced scrutiny and senior management approval are mandated if a PEP is identified. Non-compliance can result in significant penalties, highlighting the necessity for robust systems and controls to mitigate risks associated with money laundering and terrorist financing.
37. Enhanced customer due diligence - politically exposed persons.
(1) A designated person shall take steps to determine whether or not -
(a) a customer, or a beneficial owner connected with the customer or service concerned, or
(b) a beneficiary of a life assurance policy or other investment-related assurance policy, or a beneficial owner of the beneficiary,
is a politically exposed person or an immediate family member, or a close associate, of a politically exposed person.
(2) The designated person shall take the steps referred to in subsection (1) -
(a) in relation to a person referred to subsection (1)(a), prior to -
(i) establishing a business relationship with the customer, or
(ii) carrying out an occasional transaction with, for or on behalf of the customer or assisting the customer to carry out an occasional transaction,
and
(b) in relation to a person mentioned in subsection (1)(b) -