ARE THERE ENHANCED DUE DILIGENCE MEASURES FOR CERTAIN TYPES OF CLIENTS, FOR EXAMPLE, POLITICALLY EXPOSED PERSONS (PEPs)?
Yes, Article 12 of the AML/CFT Act 2006 covers PEPs. In relation to PEPs, lawyers are required to: • Determine whether the client is a politically exposed person, which includes natural persons who are or have been entrusted with prominent public functions and immediate family members, or persons known to be close associates, of such persons; • Obtain senior management approval before entering into business transactions with such persons; • Take appropriate measures to verify the source of funds that are involved in the business relationship or transaction; • Conduct regular monitoring of the business relationship. However, there is no requirement to obtain senior management approval to continue a business relationship, where a client has already been accepted and the client or recipient of funds in a transaction is subsequently found to be, or subsequently becomes a PEP.
