Regulations Governing Anti-Money Laundering of Financial Leasing Enterprises Article 10

When conducting CDD measures, a financial leasing enterprise should use risk management systems to determine whether a customer or its beneficial owner is a person who is currently or has been entrusted with a prominent public function by a foreign government or an international organization (referred to as politically exposed persons (PEPs) hereunder):1. For a customer or the beneficial owner thereof determined to be a current PEP of a foreign government, a financial leasing enterprise shall treat the customer directly as a high-risk customer, and adopt enhanced CDD measures under Subparagraph 1of Article 6.2. For a customer or the beneficial owner thereof determined to be a current PEP of the domestic government or an international organization, a financial leasing enterprise shall assess the PEP’s risks when establishing business relationship with the PEP and conduct annual review thereafter. In case of higher risk business relationship with such customers, the enterprise shall adopt enhanced CDD measures under Subparagraph 1, Paragraph 1 of Article 6.3. For a PEP who is no longer entrusted with a prominent public function by the domestic government, a foreign government or an international organization, a financial leasing enterprise shall assess the influence that the individual could still exercise by considering relevant risk factors and determine whether to apply the provisions of the preceding two subparagraphs based on the RBA.4. The preceding three subparagraphs apply to family members and close associates of PEPs.The scope of PEPs, their family members and close associates mentioned above will be determined by the regulations stipulated in the latter part of Paragraph 4, Article 7 of the Act.Provisions of the preceding paragraph do not apply when the beneficial owner of a customer specified under sub-items (A) ~ (C) and(H) of Item (3), Subparagraph 6of Article 3 is a PEP.