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  • AML-1.5 AML-1.5 Enhanced Customer Due Diligence: Politically Exposed Persons ('PEPs')

    • AML-1.5.1

      Capital Market Licensees must have appropriate risk management systems to determine whether a customer or beneficial owner is a Politically Exposed Person ('PEP'), both at the time of establishing business relations and thereafter on a periodic basis. Capital Market Licensees must utilise publicly available databases and information to establish whether a customer is a PEP.

      Amended: January 2022
      Amended: July 2016
      Added: October 2010

    • AML-1.5.2

      Capital Market Licensees must establish a client acceptance policy with regard to PEPs, taking into account the reputational and other risks involved. Senior management approval must be obtained before a PEP is accepted as a customer. Capital Market Licensees must not accept a non-Bahraini PEP as a customer based on customer due diligence undertaken using digital ID applications.

      Amended: January 2022
      Added: October 2010

    • AML-1.5.3

      Where an existing customer is a PEP, or subsequently becomes a PEP, 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) On-going account monitoring of the PEP's account by senior management (such as the MLRO).
      October 2010

    • AML-1.5.3A

      In cases of higher risk business relationships with such persons, mentioned in Paragraph AML-1.5.1, Capital Market Licensees must apply, at a minimum, the measures referred to in (b), (d) and (e) of Paragraph AML-1.5.3.

      Amended: January 2022
      Added: July 2016

    • AML-1.5.3B

      The requirements for all types of PEP must also apply to family or close associates of such PEPs.

      Added: July 2016

    • AML-1.5.3C

      For the purpose of Paragraph AML-1.5.3B, 'family' means spouse, father, mother, sons, daughters, sisters and brothers. 'Associates' are persons associated with a PEP whether such association is due to the person being an employee or partner of the PEP or of a firm represented or owned by the PEP, or family links or otherwise.

      Added: July 2016

    • AML-1.5.4

      [This Paragraph was deleted in January 2020].

      Deleted: January 2020
      Amended: July 2016
      October 2010