The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:
Individuals who have, or have had, a high political profile, or hold, or have held, public office, can pose a higher money laundering risk to firms as their position may make them vulnerable to corruption. This risk also extends to members of their immediate families and to known close associates. Politically exposed person (PEP) status itself does not, of course, incriminate individuals or entities, but it does put the client or the beneficial owner into a higher risk category.
You must apply enhanced due diligence (EDD) measures and enhanced ongoing monitoring where you have determined that the client/potential client is a PEP, or a family member or known close associate of a PEP.
When this requirement is triggered, the requirement to conduct EDD is mandatory but you can take a risk-based approach when determining the nature and extent of the EDD measures to apply.
This Practice Note explains provisions relating to PEPs, including their purpose, what is a PEP, requirements in relation to identifying and risk assessing PEPs. It also contains guidance on procedures for managing the risks associated with a PEP relationship and discusses the issue of PEPs as beneficial owners. It takes into account guidance issued by financial and legal regulators. While some of this guidance may be sector specific, it represents good practice and sensible risk management more generally.
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234