On March 16, the Financial Conduct Authority (FCA) released draft guidance (Guidance) for consultation (Consultation) on the treatment of politically exposed persons (PEPs).
Section 333U of the UK’ s Financial Services and Markets Act (FSMA) requires the definition of PEPs in the Guidance be in line with the Money Laundering and Transfer of Funds (Information on the Payer) Regulations 2017 and be consistent with the requirements of when and how to conduct transactions or business relationships with PEPs.
The Guidance clarifies who should be considered a PEP, a family member of a PEP or “known close associates,” and provides indicators for when a PEP is low or high risk, together with the measures that a firm should take in each scenario.
The Consultation closes on April 18.
The Guidance is available here.