Directive (EU) 2015/849 of the European Parliament and of the CouncilShow full title

Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (Text with EEA relevance)

Article 20U.K.

With respect to transactions or business relationships with politically exposed persons, Member States shall, in addition to the customer due diligence measures laid down in Article 13, require obliged entities to:

(a)

have in place appropriate risk management systems, including risk-based procedures, to determine whether the customer or the beneficial owner of the customer is a politically exposed person;

(b)

apply the following measures in cases of business relationships with politically exposed persons:

(i)

obtain senior management approval for establishing or continuing business relationships with such persons;

(ii)

take adequate measures to establish the source of wealth and source of funds that are involved in business relationships or transactions with such persons;

(iii)

conduct enhanced, ongoing monitoring of those business relationships.