Regulatory Alerts2017-03-14
Added · Updated
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.
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