1. In addition to applying Customer Due Diligence measures, Financial Institutions, Designated Non-Financial Businesses and Professions, and Virtual Asset Service Providers shall comply with the following: a. In respect of foreign Politically Exposed Persons: 1) Establishing appropriate risk management systems to determine whether the Customer or the Beneficial Owner is a Politically Exposed Person; 2) Obtaining approval from Senior Management prior to establishing or continuing a Business Relationship with existing Customers who are Politically Exposed Persons. 3) Taking Reasonable Measures to identify the source of funds and wealth of Customers and Beneficial Owners identified as Politically Exposed Persons. 4) Conducting enhanced ongoing monitoring of the Business Relationship. b. In respect of domestic Politically Exposed Persons and persons entrusted with a prominent function in an international organization: 1) Taking adequate measures to determine whether the Customer or the Beneficial Owner falls within these categories. 2) Applying the measures set out in subparagraphs (2), (3), and (4) of paragraph (a) of this Clause where a high-risk Business Relationship exists with such persons. 2. Subject to Clause (1) of this Article, Financial Institutions concerned with life insurance policies shall take Reasonable Measures to determine whether the beneficiary or the Beneficial Owner thereof is a Politically Exposed Person prior to the payment of compensation or entitlements or the exercise of any related rights. Where higher risks are identified, they shall inform Senior Management prior to the payment of compensation or entitlements or the exercise of any related rights, conduct enhanced scrutiny of the entire Business Relationship, and consider submitting a Suspicious Transaction Report to the Unit whenever necessary.
Interpretation and application must be checked against the official text and current version.