(1) An accountable institution shall put in place appropriate risk management systems in addition to the performance of client due diligence to determine whether a prospective client or beneficial owner is a politically exposed person.

(2) An authorised officer of an accountable institution responsible for establishing a business relationship with a prospective client of the accountable institution shall perform enhanced due diligence and seek senior management approval before establishing a business relationship with a politically exposed person.

(3) Where an existing client or beneficiary is subsequently found to be or becomes a politically exposed person, an authorised officer of the accountable institution shall seek senior management approval to continue the business relationship.