Amending Paragraph (1) of Article (2) of the Anti-Money Laundering and Counter-Terrorist Financing Rules

Monday, October 02, 2017 at 3:21 PM

Mon Oct 2, 2017 15:21

As part of the Capital Market Authority's continuous efforts to develop the capital market in the Kingdom and protect investors, and based on the Capital Market Law issued by the Royal Decree Number (M/30) Dated 2/6/1424H, the CMA Board has issued its Resolution to amend the definition of "Politically Exposed Persons (PEPs)" in Paragraph (1) of Article (2) of the Anti-Money Laundering and Counter-Terrorist Financing Rules, to be as follows:
"Politically Exposed Persons (PEPs)-PEPs refers to any of the following categories:
1. Individuals who are or have been entrusted with prominent public functions domestically or in a foreign country, for example Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, and important political party officials.
2. Persons who are or have been entrusted with a prominent function by a regional or international organization as members of senior management, including directors, deputy directors and members of the board or equivalent functions.
The PEPs definition covers the family members or relatives of the individuals, and does not cover the middle ranking or more junior individuals in the foregoing categories."
This amendment is part of the various efforts and initiatives to enhance the integrity of the capital market and the safety of funds invested in it, as well as to ensure that the provisions of the Anti-Money Laundering and Counter-Terrorist Financing Rules is in line with the FATF's 40 Recommendations on Combating Money Laundering and the Financing of Terrorism.
The updated Anti-Money Laundering and Counter-Terrorist Financing Rules can be viewed via the following link