Politically exposed persons, who are treated as high-risk customers under anti-money laundering and counter-terrorism financing law, may continue to pose a high risk even after they cease holding a public position. The anti-money laundering and counter-terrorism financing regulator Austrac has issued a draft guidance note spelling out its definition of a politically exposed person, with […]
Read MoreAUSTRAC Draft guidance note – Key terms used in ‘politically exposed person’ definition
A draft guidance note, on the key terms used in the ‘politically exposed person’ (PEP) definition in the AML/CTF Rules, has been released for public consultation. The purpose of this guidance note is to assist reporting entities in understanding key terms used in the PEP definition in Chapter 1 of the AML/CTF Rules (relating to […]
Read More$120 BILLION REMOVED FROM CHINA BY PUBLIC OFFICIALS REPORTS FINDS
According to a report published in China by the Central Bank (that has since been removed) and reported by the BBC, close to 20,000 public officials in China have collectively removed about $120 billion from China and transferred it to Canada, the US, Australia and the Netherlands through the use of offshore structures such as […]
Read MoreJP MORGAN CLOSING ACCOUNTS OF FOREIGN GOVERNMENT OFFICIALS IN US OVER COMPLIANCE COSTS
JP Morgan, the US financial services giant, is allegedly closing the bank and credit card accounts held by non-domestic politically exposed persons (“PEP“) in the US in order to contain the risks and the costs of compliance with anti-money laundering law in respect of PEPs. That would include the accounts of high profile public officials […]
Read MoreChallenges in dealing with politically exposed persons
Politically exposed persons (PEPs) are individuals who are, or have been, entrusted with prominent public functions. PEPs are potential targets for bribes due to their prominent position in public life. They have a higher risk of corruption due to their access to state accounts and funds A review of Financial Action Task Force (FATF) and […]
Read MoreJP Morgan closing accounts of foreign government officials in US over compliance costs
JP Morgan, the US financial services giant, is allegedly closing the bank and credit card accounts held by non-domestic politically exposed persons (“PEP“) in the US in order to contain the risks and the costs of compliance with anti-money laundering law in respect of PEPs. That would include the accounts of high profile public officials […]
Read MoreStandard bank fined for sub-standard AML systems
1. The Financial Conduct Authority (FCA) has fined Standard Bank PLC (Standard Bank) £7,640,400 for failings relating to its anti-money laundering (AML) policies and procedures over corporate customers connected to politically exposed persons (PEPs). 2. This is the first AML case the FCA, or its predecessor the Financial Services Authority (FSA), has brought focused on […]
Read MoreEx-banker sentenced for laundering money for corrupt politician (London)
An ex-banker became the fifth person to be convicted and sentenced for helping ex-Governor of Delta, James Ibori, to launder stolen money. The man used offshore trusts and shell companies to launder the money and was sentenced to four and a half years. Read more An ex-Goldman Sachs banker has been sentenced for four and […]
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