What does "politically exposed person as defined in the Money Laundering Act involved in the company's operations" mean?

We are legally required to check if the company using our service has any politically exposed people.(Act on Detecting and Preventing Money Laundering and Terrorist Financing 503/2008, 20 §).

Politically exposed person means a natural person who is or who has been entrusted with prominent public functions in the last 12 months:

a) a head of State, head of government, minister, deputy or assistant minister; b) a member of parliament; c) a member of the governing bodies of political parties; d) a member of supreme courts, constitutional courts or other corresponding judicial bodies whose decisions are not subject to appeal, except in exceptional cases; e) a member of courts of auditors or of the highest decision-making bodies which audit the financial management of the State and are equivalent to national audit offices; f) a member of the boards of directors of central banks; g) an ambassador or chargé d’affaires; h) an officer in the armed forces holding the rank of general or higher;  i) a member of the administrative, management or supervisory bodies of wholly state-owned enterprises; or j) a director, deputy director or member of the board of an international organisation.

A person can be politically exposed either through their own position or the position of a family member. The following individuals are considered to be related to the beneficial owner:

  • the spouse, or any partner considered by the national law of the country concerned equivalent to the spouse, of a politically exposed person
  • the children and their spouses, or above mentioned partners, of a politically exposed person
  • the parents of a politically exposed person
  • associates of a politically exposed person

Read also: New Paytrail: Why are you asking about the beneficial owners of my company?

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