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

"Roles and duties of an entity and a professional. (1) An entity or a professional shall exercise constant vigilance in its dealings with an applicant for business or with a customer, and in entering into any business relationship or one-off transaction, as a means of deterring persons from making use of any of its or his facilities for the purpose of money laundering and terrorist financing. (2) Pursuant to subsection (1), an entity or a professional shall […] v) ensure that timely reports are made to the FIU [Financial Intelligence Unit established under section 3 of the Financial Intelligence Unit Act, 2011], where a proposed or existing business relationship or one-off transaction with a politically exposed person gives grounds for suspicion." Source: Article 15, Anti-Money Laundering and Suppression of Terrorist Financing Code of Practice, 2014, SRO 10 of 2014

"Politically exposed persons.  (1) An entity or a professional shall (a) have, as part of its or his internal control systems, appropriate risk-based policies, processes and procedures for determining whether an applicant for business or a customer is a politically exposed person; (b) in dealings with a politically exposed person, take such reasonable measures as are necessary to establish the source of funds or wealth respecting such  person; (c) ensure that senior management approval is sought for establish ing or maintaining a business relationship with a politically exposed person; (d) ensure a process of regular monitoring of the business relationship with a politically exposed person; (e) in circumstances where junior staff deal with politically exposed persons, ensure that there is in place adequate supervisory oversight in that regard; and (f) ensure that the requirements of paragraphs (a) to (d) apply in relation to a customer who becomes a politically exposed person during the course of an existing business relationship. (2) Where a third party acts for a politically exposed person in establishing a business relationship or performing a transaction, the entity or professional shall nevertheless perform the necessary enhanced customer due diligence measures as if the business relationship or transaction is being made directly with the politically exposed person. (3) Subject to subsection (4), a customer who ceases to qualify as a politically exposed person by virtue of no longer holding the post or relationship that qualified him as a politically exposed person shall, for the purposes of this Code, cease to be so treated after a period of two years following the day on which he ceased to qualify as a politically exposed person. (4) Notwithstanding the fact that a customer has ceased to be treated as a politically exposed person by virtue of subsection (3), an entity or a professional may, where it or he considers it appropriate to guard against any potential risks that may be associated with the customer, continue to treat the customer as a politically exposed person for such period as the entity or professional considers relevant during the currency of the relationship, but in any case not longer than ten years from the date the customer ceased to qualify as a politically exposed person. (5) Where an entity or a professional fails to comply with a requirement of this section, it or he commits an offence and is liable to be proceeded against under section 60 (5) of the Act." Source: Article 24, Anti-Money Laundering and Suppression of Terrorist Financing Code of Practice, 2014, SRO 10 of 2014

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