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

“politically exposed persons” means individuals who are or have been entrusted with

prominent public functions in a foreign country, for example heads of state or governments,

senior politicians, senior government, judicial or military officials, senior executives of stateowned

corporations, important political party officials, including the family members and

close associates of these persons

Source: Article 2, Anti Money Laundering Act 2008

(3) Without limiting the generality of subsection (1), if the customer is a politically exposed person, the financial institution shall;

(a) adequately identify and verify his/her identity as set out in this section;

(b) have appropriate risk management systems to determine whether the customer is a politically exposed person;

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

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

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

Source: Article 27, Anti Money Laundering Act 2008

Financial institutions are required to have systems to determine whether a customer is a politcally exposed person and obtain senior management approval for business relationships, establish source of wealth and funds and implement enhanced monitoring measures for such persons.