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

29. ENHANCED CUSTOMER DUE DILIGENCE - ADDITIONAL REQUIREMENTS FOR POLITICALLY EXPOSED PERSONS.

(1)       A financial institution must take all reasonable steps to identify whether a customer or beneficial owner is a politically exposed person.

(2)       Where a financial institution takes the view that a customer or beneficial owner is a politically exposed person, it must conduct the additional measures as set out in Subsection (3).

(3)       If a financial institution takes the view that a customer or beneficial owner with whom it is establishing a business relationship, or has established a business relationship, is a politically exposed person, it must -

• obtain the approval of senior management to commence or continue the business relationship with the customer or the beneficial owner; and
• conduct ongoing enhanced due diligence of the business relationship.

(4)       A financial institution must take all reasonable steps to identify whether a beneficiary of an insurance policy or beneficial owner of the beneficiary is a politically exposed person.

(5)       Where a financial institution takes the view that a beneficiary of an insurance policy or beneficial owner of the beneficiary is a politically exposed person, it must conduct the additional measures as set out in Subsection (6).

(6)       If a financial institution takes the view that a beneficiary of an insurance policy or beneficial owner of the beneficiary is a politically exposed person and the nature and level of risk is high, it must, before making a payment to the beneficiary under the insurance policy -

(a)     obtain the approval of senior management to make the payment; and

• conduct enhanced,due diligence of the business relationship relating to the insurance policy; and
• consider making a suspicious matter report under Subsection 41(4).

Source: Article 29, Anti Money Laundering and Counter Terrorist Financing Act No 20 of 2015

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