Anti-Money Laundering and Countering Financing of Terrorism Act 2009

26 Politically exposed person

• (1) The reporting entity must, as soon as practicable after establishing a business relationship or conducting an occasional transaction, take reasonable steps to determine whether the customer or any beneficial owner is a politically exposed person.

  (2) If a reporting entity determines that a customer or beneficial owner with whom it has established a business relationship is a politically exposed person, then—

  • (a) the reporting entity must have senior management approval for continuing the business relationship; and

  • (b) the reporting entity must obtain information about the source of wealth or funds of the customer or beneficial owner and take reasonable steps to verify the source of that wealth or those funds.

  (3) If a reporting entity determines that a customer or beneficial owner with whom it has conducted an occasional transaction is a politically exposed person, then the reporting entity must, as soon as practicable after conducting that transaction, take reasonable steps to obtain information about the source of wealth or funds of the customer or beneficial owner and verify the source of that wealth or those funds.