Skip to main content Section 4 Politically Exposed Persons (PEPs)
Article (15)
- In addition to undertaking CDD measures required under Section 3, Part 1 of this Chapter, Financial Institutions and DNFBPs shall be required to carry out the following:
First: For Foreign PEPs:
- Put in place suitable risk management systems to determine whether a Customer or the Beneficial Owner is considered a PEP.
- Obtain senior management approval before establishing a business relationship, or continuing an existing one, with a PEP.
- Take reasonable measures to establish the source of funds of Customers and Beneficial Owners identified as PEPs.
- Conduct enhanced ongoing monitoring over such relationship.
Second: For Domestic PEPs and individuals previously entrusted with prominent functions at international organisations:
- Take sufficient measures to identify whether the Customer or the Beneficial Owner is considered one of those persons.
- Take the measures identified in Clauses (b), (c), and (d) under the first paragraph of this Article, when there is a high-risk business relationship accompanying such persons.
- Financial Institutions shall be required to take reasonable measures to determine the beneficiary or Beneficial Owner of life insurance policies and family takaful insurance. If identified as a PEP, Financial institutions shall inform senior management before the pay-out of those policies, or prior to the exercise of any rights related to them, in addition to thoroughly examining the overall business relationship, and consider reporting to the Unit a suspicious transaction report.