Enhanced due diligence for PEPs
A client is a senior government official from another country. What extra checks are needed?
The situation
Politically exposed persons need enhanced due diligence: senior management approval, source of funds and wealth checks, and closer monitoring.
The law
- Federal Decree-Law 10 of 2025: Enhanced due diligence for higher-risk customers
What it means for you
Example: a foreign minister's relative buying a villa through your brokerage needs approval from your management, documents showing source of funds, and ongoing monitoring. If you cannot get satisfactory evidence, do not proceed and consider a report.
What to do
- Identify PEP status through screening.
- Get senior approval.
- Collect source of funds and wealth evidence.
- Monitor the relationship more closely.
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