FC-1.5 FC-1.5 Enhanced Customer Due Diligence: Politically Exposed Persons (“PEPs”)
FC-1.5.1
Licensees must have appropriate risk management systems to determine whether a customer is aPolitically Exposed Person ('PEP') , both at the time of establishing business relations and thereafter on a periodic basis.Licensees must utilise publicly available databases and information to establish whether a customer is aPEP .October 2010FC-1.5.2
Licensees must establish a client acceptance policy with regard toPEPs , taking into account the reputational and other risks involved. Senior management approval must be obtained before aPEP is accepted as a customer.Licensees must not accept a non-Bahraini PEP as a customer based on customer due diligence undertaken using digital ID applications.Amended: January 2022
October 2010FC-1.5.3
Where an existing customer is a
PEP , or subsequently becomes aPEP , enhanced monitoring and customer due diligence measures must include:(a) Analysis of complex financial structures, including trusts, foundations or international business corporations;(b) A written record in the customer file to establish that reasonable measures have been taken to establish both the source of wealth and the source of funds;(c) Development of a profile of anticipated customer activity, to be used in on-going monitoring;(d) Approval of senior management for allowing the customer relationship to continue; and(e) Ongoing account monitoring of thePEP's account by senior management (such as the MLRO).October 2010FC-1.5.4
[This Paragraph was deleted in July 2016 as the definition is included under Part B in the Glossary.]
Deleted: July 2016
October 2010