A major change is expected in the Financial Transactions Reporting Act in relation to the definition of Politically Exposed Person.
Currently, a Politically Exposed Person is defined as any individual who is or has been entrusted with any appointment with any prominent public function in a foreign country, such as government, a senior politician, a senior government, judicial or military official and others holding prominent positions.
The Director of Fiji Intelligence Unit, Razim Buksh says recommendations have been made for a new definition for a Politically Exposed Person.
After the proposed change in the Act, local individuals will also fall under the category for a Politically Exposed Person.
This will include people from Fiji who are or have been entrusted with any prominent public function, such as government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations and important political party officials.
Buksh says after proposed changes to the Financial Transactions Reporting Act, commercial banks and other financial and non-financial institutions and businesses would be required to undertake enhanced scrutiny and enhanced due diligence measures in relation to foreign as well as local Politically Exposed Persons.
This will include scrutiny of customers identity, scrutiny of the source and legitimacy of funds, transaction monitoring and customer profiling.
He says these financial institutions will have to take reasonable measures to determine whether a customer or the beneficial owner is a domestic Politically Exposed Person or an international organisation Politically Exposed Person.
Should the financial institutions establish that a customer is a Politically Exposed Person and where the business relationship with such a person is assessed as being of a higher risk, the financial institutions will have to take reasonable measures to establish the source of wealth and funds.
Also, they will conduct regular and enhanced monitoring of the business relationship.
Family members and close associates of the Politically Exposed Person who engage in higher risk business relationship with a financial institution will also be subject to some measures.
