70. Are reporting entities required to enforce enhanced due diligence policies and procedures regarding politically exposed persons?

(3) Without limiting the generality of subsection (1), a financial institution must have risk management systems capable of determining whether a customer is a politically exposed person, and where the customer is determined to be such a person, the financial institution must –

(a) give the approval of senior management before establishing a business relationship with the customer;

(b) take reasonable measures to establish the source of wealth and source of funds; and

(c) conduct regular and enhanced monitoring of the business relationship.

Source: Article 4, Financial Transactions Reporting Act 2004

Financial institutions must have senior management approval of business relationships with politically exposed persons, take reasonable measures to establish the source of their wealth and funds and conduct regular and enhanced monitoring of the business relationship.