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Article (15)

IA-BOD-RES 10/2019

  1. Financial Institutions and Designated Non-Financial Businesses and Professions must, in addition to implementing ClientClient Due Diligence (CDD) in accordance with the third part of the first section of this chapter, adopt the following:

     First: As for Foreign Politically exposed person (PEPs),
     

    1. Developing the appropriate risk management systems to determine whether the Client or the beneficial owner is a Foreign Politically exposed person.
       
    2. Obtaining senior management approval before establishing or continuing the business relationship for current Clients who are Foreign Politically exposed persons.
       
    3. Taking reasonable measures to determine the sources of funds and wealth of Clients, and the beneficial owners who have been identified as politically exposed persons.
       
    4. Carrying out continuous and enhanced follow-up of the business relationship.
       

     Second: As for local politically exposed persons and persons who have already been assigned a prominent position in an international organization:
     

    1.  Taking sufficient measures to determine whether the Client or the beneficial owner is one of these persons.
       
    2. Taking the measures mentioned in paragraphs nos. (b), (c) and (d) of article “First”, when there is a high-risk business relationship with such persons.
       
  2. Subject to clause no. (1) of this article, the Financial Institutions concerned with life and family takaful insurance policies must take reasonable measures to determine whether the beneficiary or beneficial owner is a politically exposed person before paying compensation or dues or exercising any rights related to those policies. When there are higher risks, they must inform senior management before paying compensation or dues or exercising any rights related to them, conduct a thorough examination of the overall business relationship, and consider reporting a suspicious transaction report to the Unit.
     
This article has been amended by Cabinet Resolution No. (24) of 2022. You are viewing the latest version. To view the previous version, click the version box below.
Version 1(effective from 10/02/2019 to 01/04/2022)

 

  1. 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:
     
     
    1. Put in place suitable risk management systems to determine whether a Customer or the Beneficial Owner is considered a PEP.
       
    2. Obtain senior management approval before establishing a business relationship, or continuing an existing one, with a PEP.
       
    3. Take reasonable measures to establish the source of funds of Customers and Beneficial Owners identified as PEPs.
       
    4. Conduct enhanced ongoing monitoring over such relationship.
       
       Second: For Domestic PEPs and individuals previously entrusted with prominent functions at international organisations:
       
    5. Take sufficient measures to identify whether the Customer or the Beneficial Owner is considered one of those persons.
       
    6. 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.
       
  2. 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.