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Location: Central Bank of Bahrain Volume 3—Insurance > Part A > Business Standards > FC Financial Crime > FC-1 Customer Due Diligence > FC-1.5 Enhanced Customer Due Diligence: Politically Exposed Persons ('PEPs')
  • FC-1.5 Enhanced Customer Due Diligence: Politically Exposed Persons ('PEPs')

    • FC-1.5.1

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

      Amended: July 2016
      Amended: October 2015
      Amended: January 2007
      Amended: October 2007

    • FC-1.5.2

      Insurance licenseesG 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 customerG .

      Amended: January 2007

    • FC-1.5.3

      Where an existing customerG is a PEPG , 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 customerG 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 customerG activity, to be used in on-going monitoring;
      (d) Approval of senior management for allowing the customerG relationship to continue; and
      (e) On-going account monitoring of the PEP'sG account by senior management (such as the MLRO).
      Amended: January 2007

    • FC-1.5.3A

      In cases of higher risk business relationships with such persons, mentioned in Paragraph FC-1.5.1, insurance licenseesG must apply the measures referred to in Subparagraphs FC-1.5.3 (b), (d) and (e).

      Added: October 2015

    • FC-1.5.3B

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

      Added: October 2015

    • FC-1.5.3C

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

      Added: October 2015

    • FC-1.5.4

      [This Paragraph was deleted in July 2016 as definition is included under Part B in the Glossary.]

      Deleted: July 2016
      Amended: October 2015
      Amended: January 2007

    • FC-1.5.5

      In relation to life insurance policies, insurance licenseesG must take reasonable measures to determine whether the beneficiaries and/or, where required, the beneficial owner of the beneficiaryG , are PEPs. This must occur, at the latest, at the time of the payout.

      Added: January 2018

    • FC-1.5.6

      Where higher risks are identified, senior managementG must be informed before the payout of the policy proceeds, in order to conduct enhanced scrutiny on the whole business relationship with the policyholder, and to consider making a suspicious transaction report.

      Added: January 2018

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