Regulated Industries may be charged with fines and penalties if they engage in business with PEPs without adhering to know your customer procedures.
The Financial Action Task Force is an inter-governmental policy-making body whose purpose is to establish international standards, and develop and promote policies, both at national and international levels, to combat money laundering and terrorist financing.
The Financial Action Task Force is the organization dictating procedures.
Note that “Financial institutions” refers to the list of Regulated industries.
a) Have appropriate risk management systems to determine whether the customer is a politically exposed person.
b) Obtain senior management approval for establishing business relationships with such customers.
c) Take reasonable measures to establish the source of wealth and source of funds.
d) Conduct enhanced ongoing monitoring of the business relationship.