FATF 40 Recommendations
D. Preventive measures (R.9 to R.23) – FATF 40 Recommendations

FATF 40 Recommendations R.12: R.12 Politically exposed persons

In relation to foreign PEPs as customers or beneficial owners, financial institutions, beyond normal CDD, have risk-management systems to determine whether a customer or beneficial owner is a PEP, obtain senior management approval to establish or continue the relationship, take reasonable measures to establish the source of wealth and source of funds, and conduct enhanced ongoing monitoring; they take reasonable measures to determine whether a customer or beneficial owner is a domestic PEP or a person entrusted with a prominent function by an international organisation and apply the same three measures where the relationship is higher risk; the requirements extend to family members and close associates; the Interpretive Note extends the measures to beneficiaries and beneficial owners of beneficiaries of life insurance policies.

Maintained by Gerard BlokdykControl text last updated

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