Politically exposed person

On 1 March 2016, amendments to the law of the Republic of Latvia “On the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and Terrorism Financing” entered into effect, changing the definition of politically exposed person. In order to minimize corruption and money laundering risks, ABLV Bank, AS is obliged by law to collect data and identify which of the clients / clients’ beneficiaries should be considered as politically exposed persons, their family members or close associates.

According to the law “On the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and Terrorism Financing” the following person shall be deemed a politically exposed person (hereinafter referred to as PEP): a person who holds or has held a prominent public position in the Republic of Latvia, a country of the European Union or European Economic Area or a third country, including senior-level state official, head of a state administrative unit (municipality), head of the government, minister (deputy minister or assistant deputy minister if there is such position in a relevant country), secretary of state or another high level official in the government or state administrative unit (municipality), member of parliament or similar legislative body, member of the management body (board) of a political party, judge of constitutional court, supreme court, or another level court (member of judicial body), member of the council or board of a supreme audit institution, member of the council or the board of a central bank, ambassador, charge d'affaires, armed forces higher officer, member of the council or board of a state capital company, head (director, deputy director) of international organization and member of the board or a person who holds an equal position at such organisation.

The following person shall be deemed a family member of a politically exposed person:
a) a spouse or person considered to be the equivalent to a spouse. A person may be deemed the equivalent to a spouse only provided that he / she has such status under the laws of the respective country,
b) a child or a child of a politically exposed person’s spouse or person considered to be the equivalent to a spouse, his / her spouse or person considered to be the equivalent to a spouse,
c) a parent, grandparent or grandchild,
d) a brother or sister.

A close associate of a politically exposed person is an individual publicly known to maintain business or other close relationship with a politically exposed person, or to be a shareholder in one and the same commercial company with a PEP, and also an individual who is the sole owner of such legal entity which is known to be actually established for the benefit of a PEP.