Skip to main content

Article (15)

IA-BOD-RES 10/2019
  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:
       
    1. Take sufficient measures to identify whether the Customer or the Beneficial Owner is considered one of those persons.
       
    2. 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.