Regulatory Alerts2024-07-15
Added · Updated
FG25/3: Treatment of politically exposed persons for anti-money laundering purposes
The Financial Conduct Authority finalizes guidance to clarify that non-executive board members of UK civil service departments are not treated as politically exposed persons (PEPs) and that domestic PEPs are lower risk unless other risk factors exist. The document allows firms flexibility in senior management sign-offs for PEP relationships, permitting suitably senior persons other than the Money Laundering Reporting Officer to approve business relationships while the MLRO retains oversight. Additionally, the guidance updates definitions to include the Northern Ireland Assembly as a similar legislative body and requires firms to document the rationale for continuing enhanced due diligence on former PEPs.
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