Guidelines «Management of business relations with politically exposed persons» have been published

The State Financial Monitoring Service of Ukraine, taking into account the requirements of EU Directives 2015/843 and 2018/843 based on the results of compiling the national legislation, best international practices, case studies and unresolved issues, has prepared and published Guidelines «Management of business relations with politically exposed persons».

Guidelines address key issues of compliance with international standards and due diligence measures regarding politically exposed persons. Particular emphasis is placed on «red flags» to identify politically exposed persons and their activities. Particular attention is paid to the peculiarities of the risk-based approach application, as well as the measures taken by reporting entities.

From a practical point of view, recommendations on open information sources concerning identification of politically exposed persons are relevant, as well as typological studies of the SFMS on participation of politically exposed persons in schemes related to possible money laundering.

The Head of the State Financial Monitoring Service of Ukraine Igor Cherkaskyi noted: «These Guidelines are a very important information resource given that corruption remains one of the key threats to the national security. Extensive powers and authority given to politically exposed persons to perform state functions, in the absence of effective control mechanisms, are a source of corruption risks and risks of money laundering from corruption».

Guidelines are primarily designed for reporting entities, but they will be useful for employees of state financial monitoring entities, law enforcement and judicial authorities.       

Guidelines can be found on the official website of the SFMS (https://fiu.gov.ua) in section «Financial Monitoring»/«Methodology»/«Recommendations»/«Guidelines «Management of business relations with politically exposed persons»» or in section «Publications».

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