Finalised guidance: The treatment of politically exposed persons for anti-money laundering purposes

The Financial Conduct Authority issues finalised guidance requiring firms to apply a risk-sensitive, case-by-case approach to identifying politically exposed persons (PEPs) and applying enhanced due diligence measures. The guidance clarifies that UK local government officials, junior civil servants, and most military personnel are not PEPs, while defining specific senior roles such as Permanent Secretaries and Supreme Court judges as prominent. Firms must assess individual risk levels, applying lower-risk measures for customers from transparent jurisdictions and higher-risk measures for those posing greater threats, while maintaining senior management approval for high-risk relationships.

FCA published 4 documents in the last 30 days — get each new one by email the day it lands.

Financial Conduct Authority Page 1 of 13
Finalised guidance
1 Executive Summary
Legislative Background
1.1 In March 2017, we consulted on guidance in connection with politically exposed persons
(‘PEPs’) under section 333U of the Financial Services and Markets Act 2000 (section 333U’). Section 333U contained a duty on the FCA to issue guidance in connection with PEPs prior to the coming into force of regulations transposing the fourth money laundering directive or any subsequent EU measures.
1.2 However, as of 6 July 2017, section 333U has yet to be commenced. We now have a
duty under regulation 48(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (‘the Regulations’) to issue guidance about the enhanced customer due diligence measures in respect of PEPs. In addition, under the Regulations it says that “the duty to issue guidance under section 333U does not apply to the extent that that duty is otherwise satisfied as a result of guidance issued by us under the Regulations”.
1.3 Accordingly, we issue this guidance under regulation 48(1) of the Regulations and in
doing so consider that we will have satisfied the duty under section 333U when this provision is commenced. We have decided not to consult again on this guidance as the FG 17/6 The treatment of politically exposed persons for anti-money laundering purposes July 2017

Read the rest free, and get an email when FCA publishes again

Email me when FCA publishes something newOne email per publication, same day. Sign in below to keep reading.

Lineage: In force

amendssupersedesissued underrefers toproposed or not in RegAlertarrows run from the older text to the one that changes it

Source: Financial Conduct Authority — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works