5‑5 Actions requiring approval or that s5‑5 Actions requiring approval or that senior manager be informed

5‑5 Actions requiring approval or that senior manager be informed

Approval of senior manager (1) For the purposes of paragraph 26F(3)(e) of the Act, the AML/CTF policies of a reporting entity must ensure that the approval of a senior manager of the reporting entity is obtained before the reporting entity does any of the following: (a) commences to provide a designated service to a customer, if the reporting entity has established on reasonable grounds that the customer, any beneficial owner of the customer or any person on whose behalf the customer is receiving the service is a foreign politically exposed person; (b) commences to provide a designated service to a customer, if: (i) the reporting entity has established on reasonable grounds that the customer, any beneficial owner of the customer or any person on whose behalf the customer is receiving the service is a domestic politically exposed person; and (ii) the ML/TF risk of the customer is high; (c) commences to provide a designated service to a customer, if: (i) the reporting entity has established on reasonable grounds that the customer, any beneficial owner of the customer or any person on whose behalf the customer is receiving the service is an international organisation politically exposed person; and (ii) the ML/TF risk of the customer is high; (e) commences to provide a designated service as part of a nested services relationship; (f) enters into an agreement or arrangement of the kind referred to in paragraph 37A(1)(a) of the Act as the first entity. (1A) For the purposes of paragraph 26F(3)(e) of the Act, the AML/CTF policies of a reporting entity must ensure that, if the reporting entity establishes on reasonable grounds that the customer, any beneficial owner of the customer or any person on whose behalf the customer is receiving a designated service: (a) has become a foreign politically exposed person; or (b) has become a domestic politically exposed person, or an international organisation politically exposed person, in circumstances where the ML/TF risk of the customer is high; a senior manager of the reporting entity will determine, as soon as practicable after the steps required by section 6‑24 of this instrument are completed, whether the reporting entity will continue a business relationship with the customer. (2) A foreign politically exposed person is to be treated as a domestic politically exposed person for the purposes of subsections (1) and (1A) if: (a) the designated service is being provided to the customer at or through a permanent establishment in a foreign country; and (b) the foreign politically exposed person has that status because of the person’s connection to the same foreign country. Informing senior manager (3) For the purposes of paragraph 26F(3)(e) of the Act, the AML/CTF policies of a reporting entity must ensure that a senior manager of the reporting entity is informed before the reporting entity commences to provide a designated service covered by item 39 of table 1 in section 6 of the Act to a customer if the ML/TF risk of the customer is high. Other actions requiring approval (4) For the purposes of paragraph 26F(3)(e) of the Act, the AML/CTF policies of a reporting entity must deal with: (a) circumstances (other than the circumstances mentioned in subsection (1)) in which approval is required relating to: (i) the reporting entity commencing to provide a designated service to a customer; or (ii) whether the reporting entity is to continue a business relationship with a customer; and (b) who is authorised to give the required approval in each of those circumstances. (5) Without limiting subsection (4), the polices must deal with circumstances in which the approval of a senior manager of the reporting entity is required if the customer, any beneficial owner of the customer or any person on whose behalf the customer is receiving a designated service was previously a politically exposed person.