Source: OJ L, 2024/1624, 19.6.2024Current language: EN
- Anti-money laundering
Basic legislative acts
- Anti-money laundering regulation (AMLR)
Article 44 Politically exposed persons who are beneficiaries of insurance policies
Summary What does Article 44 of the Anti-money laundering regulation (AMLR) say?
This article addresses a specific scenario within the politically exposed persons (PEPs) framework established by Article 42: the point at which insurance policy beneficiaries come into focus.
Rather than applying PEP checks at the outset of a relationship, obliged entities are required to screen beneficiaries of life or investment-related insurance policies for PEP status at a later, specific trigger point — namely, at the time of payout or policy assignment.
If higher risks are identified at that stage, two additional measures kick in on top of the standard customer due diligence obligations already set out in Article 20.
Important points:
- Check whether insurance policy beneficiaries (or their beneficial owners) are politically exposed persons, and do so no later than at the time of payout or policy assignment.
- Where higher risks are identified, inform senior management before paying out policy proceeds.
- Where higher risks are identified, conduct enhanced scrutiny of the entire business relationship with the policyholder.
Springlex's summary of the article, a reading aid, not a substitute for the legal text.
Obliged entities shall take reasonable measures to determine whether the beneficiaries of a life or other investment-related insurance policy or, where relevant, the beneficial owner of the beneficiary are politically exposed persons. Those measures shall be taken no later than at the time of the payout or at the time of the assignment, in whole or in part, of the policy. Where there are higher risks identified, in addition to applying the customer due diligence measures laid down in Article 20, obliged entities shall:
inform senior management before payout of policy proceeds;
conduct enhanced scrutiny of the entire business relationship with the policyholder.
Springlex and this text is meant purely as a documentation tool and has no legal effect. No liability is assumed for its content. The authentic version of this act is the one published in the Official Journal of the European Union.
Definition
senior management
Definition
politically exposed person
- in a Member State:
- heads of State, heads of government, ministers and deputy or assistant ministers;
- members of parliament or of similar legislative bodies;
- members of the governing bodies of political parties that hold seats in national executive or legislative bodies, or in regional or local executive or legislative bodies representing constituencies of at least 50 000 inhabitants;
- members of supreme courts, of constitutional courts or of other high-level judicial bodies, the decisions of which are not subject to further appeal, except in exceptional circumstances;
- members of courts of auditors or of the boards of central banks;
- ambassadors, chargés d’affaires and high-ranking officers in the armed forces;
- members of the administrative, management or supervisory bodies of enterprises controlled under any of the relationships listed in Article 22 of Directive 2013/34/EU either by the state, or, where those enterprises qualify as medium sized or large undertakings or medium sized or large groups, as defined in Article 3(3), (4), (6) and (7) of that Directive, by regional or local authorities;
- heads of regional and local authorities, including groupings of municipalities and metropolitan regions, with at least 50 000 inhabitants;
- other prominent public functions provided for by Member States;
- in an international organisation:
- the highest ranking officials, their deputies and members of the board or equivalent functions of an international organisation;
- representatives to a Member State or to the Union;
- at Union level:
functions at the level of Union institutions and bodies that are equivalent to those listed in points (a) (i), (ii), (iv), (v) and (vi);
- in a third country:
functions that are equivalent to those listed in point (a);
Definition
parent undertaking
- for groups whose head office is located in the Union, an obliged entity that is a parent undertaking as defined in Article 2, point (9), of Directive 2013/34/EU that is not itself a subsidiary of another undertaking in the Union, provided that at least one subsidiary undertaking is an obliged entity;
- for groups whose head office is located outside of the Union, where at least two subsidiary undertakings are obliged entities established in the Union, an undertaking within that group established in the Union that:
- is an obliged entity;
- is an undertaking that is not a subsidiary of another undertaking that is an obliged entity established in the Union;
- has a sufficient prominence within the group and a sufficient understanding of the operations of the group that are subject to the requirements of this Regulation; and
- is given the responsibility of implementing group-wide requirements under Chapter II, Section 2 of this Regulation;
Definition
property
Definition
express trust
Definition
legal arrangement
Definition
management body
Definition
terrorist financing
Definition
group
Definition
money laundering
Definition
third country
Definition
beneficial owner
Definition
business relationship
Definition
management body in its management function