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Location: Central Bank of Bahrain Volume 4—Investment Business > Part A > Business Standards > FC Financial Crime > FC-1 Customer Due Diligence > FC-1.5 Enhanced Customer Due Diligence: Politically Exposed Persons ('PEPs') > FC-1.5.1
  • FC-1.5 Enhanced Customer Due Diligence: Politically Exposed Persons ('PEPs')

    • FC-1.5.1

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

      Amended: July 2016
      Amended: October 2014
      January 2007

    • FC-1.5.2

      Investment firm licenseesG must establish a clientG acceptance policy with regard to PEPsG , taking into account the reputational and other risks involved. Senior management approval must be obtained before a PEPG is accepted as a customer.

      Amended: January 2007

    • FC-1.5.3

      Where an existing customer is a PEPG , or subsequently becomes a PEPG , 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 customer 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 customer activity, to be used in on-going monitoring;
      (d) Approval of senior management for allowing the customer 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, investment firm licenseesG must apply the measures referred to in (b), (d) and (e) of Paragraph FC-1.5.3.

      Added: October 2014

    • FC-1.5.3B

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

      Added: October 2014

    • 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 2014

    • 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 2014
      January 2007

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