Section 37 of the Criminal Justice (Money Laundering & Terrorist Financing) Act 2010 (CJA) as amended, requires ALPI to identify Politically Exposed Persons, or any individual who is an immediate family member or a close associate of a Politically Exposed Person, prior to establishing a business relationship with a policyholder1 or carrying out a transaction.
The Definitions set out in the act are:
“politically exposed person” means an individual who is or has at any time in the preceding 12 months been, entrusted with a prominent public function, including either of the following individuals (but not including any middle ranking or more junior official).
A a specified official;
B member of the administrative, management or supervisory body of a state-owned enterprise;“specified official” means any of the following officials (including any such officials in an institution of the European Communities or an international body):
A head of state, head of government, government minister or deputy or assistant government minister;
B member of a parliament or of a similar legislative body;
BB. a member of the governing body of a political party;
C a member of a supreme court, constitutional court or other high-level judicial body whose decisions, other than in exceptional circumstances, are not subject to further appeal;
D a member of a court of auditors or of the board of a central bank;
E an ambassador, chargé d'affairs or high-ranking officer in the armed forces;
F a director, deputy director or member of the board of, or person performing the equivalent function in relation to, an international organisation.“immediate family member” of a politically exposed person includes any of the following persons:
A any spouse of the politically exposed person;
B any person who is considered to be equivalent to a spouse of the politically exposed person under the national or other law of the place where the person or politically exposed person resides;
C any child of the politically exposed person;
D any spouse of a child of the politically exposed person;
E any person considered to be equivalent to a spouse of a child of the politically exposed person under the national or other law of the place where the person or child resides;
F any parent of the politically exposed person;
G any other family member of the politically exposed person who is of a prescribed class;“close associate” of a politically exposed person includes any of the following persons:
A any individual who has joint beneficial ownership of a legal entity or legal arrangement, or any other close business relations, with the politically exposed person;
B any individual who has sole beneficial ownership of a legal entity or legal arrangement set up for the actual benefit of the politically exposed person;- The term policyholder refers to both entities and individuals with whom ALPI is doing business. In addition, it also includes the beneficial owner(s) of the policy. A beneficial owner is defined as any person who owns or controls (directly or indirectly) more than 25% of the shares, capital, profits or voting rights, or otherwise exercises control over the management of the entity.