Section 37 of the Act requires ALPI to identify Politically Exposed Persons, or any individual who is an immediate family member or a close associate of a Politically Exposed Person, prior to establishing a business relationship with a customer1 or carrying out a transaction.
The Definitions set out in the act are:
"politically exposed person" means an individual who is or has at any time in the preceding 12 months been, entrusted with a prominent public function, including any of the following individuals (but not including any middle ranking or more junior official).
- a specified official
- a member of the administrative, management or supervisory body of a state-owned enterprise
- any individual performing a prescribed function
“prominent public function”, in respect of such functions within the State, and where not otherwise specified, shall be an office or other employment in a public body in respect of which the remuneration is not less than the lowest remuneration in relation to the position of Deputy Secretary General in the Civil Service2. For the purposes of this definition, ‘public body’ shall not include courts.
"specified official" means any of the following officials (including any such officials in an institution of the European Communities or an international body):
- a head of state, head of government, government minister or deputy or assistant government minister
- a member of a parliament or of a similar legislative body
- a member of the governing body of a political party
- a member of a supreme court, constitutional court or other high level judicial body whose decisions, other than in exceptional circumstances, are not subject to further appeal
- a member of a court of auditors or of the board of a central bank
- an ambassador, chargé d'affairs or high-ranking officer in the armed forces
- a director, deputy director or member of the board of, or person performing the equivalent function in relation to, an international organisation
"immediate family member" of a politically exposed person includes any of the following persons:
- any spouse of the politically exposed person
- any person who is considered to be equivalent to a spouse of the politically exposed person under the national or other law of the place where the person or politically exposed person resides
- any child of the politically exposed person
- any spouse of a child of the politically exposed person
- any person considered to be equivalent to a spouse of a child of the politically exposed person under the national or other law of the place where the person or child resides
- any parent of the politically exposed person
- any other family member of the politically exposed person who is of a prescribed class
"close associate" of a politically exposed person includes any of the following persons:
- any individual who has joint beneficial ownership of a legal entity or legal arrangement, or any other close business relations, with the politically exposed person
- any individual who has sole beneficial ownership of a legal entity or legal arrangement set up for the actual benefit of the politically exposed person
1 .The term customer refers to both entities and individuals with whom ALPI is doing business. In addition, it also includes the beneficial owner(s) of the policy. A beneficial owner is defined as any person who owns or controls (directly or indirectly) more than 25% of the shares, capital, profits or voting rights, or otherwise exercises control over the management of the entity
2 .The pay scale for a Deputy Secretary is issued by the Dept of Public Expenditure and Reform & is subject to change. The most up-to-date pay scale should be used for the purposes of identifying a person entrusted with a prominent public function. The current pay scale for a Deputy Secretary is set out in Dept of Public Expenditure and Reform Circular 19/2022, available at https://www.gov.ie/en/circular/0d4cf-192022-february-2nd-and-october-1st-2022