Effective January 10, 2024, the Amended Money Laundering Regulations 2017 (No. 1371) will introduce notable changes in the assessment of risks associated with Politically Exposed Persons (PEPs). The regulations primarily focus on the treatment of domestic PEPs, along with their family members and known close associates.
According to the accompanying explanatory note, the amended regulations reaffirm the existing PEP Guidance (FG17/6). In the case of customers identified as domestic PEPs or having close associations with domestic PEPs, the initial risk assessment will consider them to present a lower level of risk compared to non-domestic PEPs.
The explanatory note further specifies that the extent of enhanced customer due diligence measures applied to domestic PEPs should generally be less stringent than those for non-domestic PEPs. However, this flexibility is contingent upon the absence of other high (enhanced) risk factors.
For a detailed overview of the amended regulations, you can access the official document here.
In light of these changes, financial institutions are urged to review and adapt their risk management practices to ensure compliance. The regulatory landscape continues to evolve, and institutions must stay vigilant to meet these standards.
How Neopay Can Help
At Neopay, we understand the importance of staying compliant with evolving regulatory frameworks. Our team is ready to assist your firm in reviewing and enhancing your financial crime prevention framework, systems, and controls. We ensure that PEPs are identified, assessed, and managed in strict accordance with the latest regulatory requirements.
For a comprehensive evaluation of your financial crime prevention measures, contact us today. Our team is committed to supporting your business in effectively navigating these regulatory changes.