Article 8
| No: 14525 | Date(g): 8/11/2017 | Date(h): 19/2/1439 | Status: In-Force |
| FIs and DNFBPs shall use appropriate systems to determine whether a customer or beneficial owner is or has become assignee with a prominent public function in the Kingdom or a foreign country; or with a senior management position in an international organization and if so, apply additional measures as prescribed by the Implementing Regulation. |
8/1
The person is or has become assignee with a prominent public function in the Kingdom or a foreign country; or with a senior management position in an international organization is consider as “politically exposed person”, it shall comprise the following:
| a. | Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, and important party officials | |||
| b. | Directors, deputy directors, and members of the board or equivalent function, of any international organization. | |||
8/2
The obligations under Article 8 of the Law shall apply in relation to politically exposed persons, their close associates and family members.
8/3
A family member of a politically exposed person shall include any individual who is related to a politically exposed person by blood or marriage up to the second degree.
8/4
A close associate of a politically exposed person shall include any natural person who is known to have joint beneficial ownership of a legal entity or legal arrangement or who is in a close business relationship with the politically exposed person, or who has a beneficial ownership of a legal entity or legal arrangement which is known to have been set up for the benefit de facto of a politically exposed person.
8/5
A financial institution or designated non-financial business and profession shall in relation to politically exposed persons from a foreign country, obtain senior management approval before establishing or continuing such a business relationship; take reasonable measures to establish the source of wealth and the source of funds of the politically exposed person; and conduct enhanced ongoing monitoring on the business relationship; and the same applied in relation to politically exposed persons from the Kingdom, in case of a higher risk of money laundering.
8/6
A financial institution shall take the reasonable measures to determine whether the beneficiaries or the beneficial owner from the saving and protection policy or any other investment insurance policy, before the payout of the policy prior to the exercising of any rights related to the policy, are PEPs, if so, the FI shall inform the senior management before the payout or prior to the exercising of any rights related to the policy, and conduct enhanced scrutiny on the business relationship, and consider making a suspicious transaction report.