ANNEX I – KYC DEFINITIONS

1. Politically Exposed Person (PEP)

A Politically Exposed Person (PEP) is a natural person who is or who has been entrusted with prominent public functions and includes the following:

a. heads of State, heads of government, ministers and deputy or assistant ministers;
b. members of parliament or of similar legislative bodies;
c. members of the governing bodies of political parties;
d. 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;
e. members of courts of auditors;
f. members of the boards of central banks;
g. ambassadors and authorised diplomats;
h. high-ranking officers in the armed forces;
i. members of the administrative, management or supervisory bodies of State-owned enterprises;
j. directors, deputy directors and members of the board or equivalent function of an international organisation;
k. the spouse, or a person considered to be equivalent to a spouse, of a person mentioned under (a) to (j) above;
l. children of a person mentioned under (a) to (j) above, as well as their spouse or partner who is considered equivalent to a spouse;
m. the parents of a person mentioned under (a) to (j) above;
n. natural persons who are known to have joint beneficial ownership of a legal entity or legal arrangement, or any other close business relations to a person mentioned under (a) to (j) above;
o. natural persons who have sole beneficial ownership of a legal entity or legal arrangement that is known to have been set up for the de facto benefit of a person mentioned under (a) to (j) above.

No public function referred to in points (a) to (j) shall be understood as covering middle-ranking or more junior officials;

2. Beneficial Owner

Any natural person(s) who ultimately owns or controls a legal entity, as well as the natural person(s) on whose behalf a transaction or activity is conducted.

1. Specifically, in case of corporate entities, the following persons are considered as “beneficial owners”:

a. the natural person(s) who ultimately owns or controls a corporate entity through direct or indirect ownership or control of a sufficient percentage of the shares or voting rights or ownership interest in that entity, including through bearer shareholdings, or through control via other means. A shareholding of more than 25 % or an ownership interest of more than 25 % in the corporate entity held by a natural person, shall be an indication of direct ownership. A shareholding of more than 25 % or an ownership interest of more than 25 % in the corporate entity held by another corporate entity, which is under the control of a natural person(s), or by multiple corporate entities, which are under the control of the same natural person(s), shall be an indication of indirect ownership.
Further, control through other means may be determined using any kind of criteria; these include criteria used in order to decide whether consolidated financial statements shall be made, such as, whether a shareholders’ agreement exists, whether a shareholder has a dominant influence or whether a shareholder is entitled to appoint the company’s senior management.
It should be noted that the above criteria do not apply to companies listed on a regulated market that is subject to disclosure requirements consistent with European Union law or subject to equivalent international standards which ensure adequate transparency in relation to the beneficial owner.

b. In exceptional cases and only if, after having exhausted all the above criteria, no person can be identified as the beneficial owner, or if there is any doubt that the person(s) identified is/are the beneficial owner(s), the natural person(s) who hold the position of senior managing official(s), is/are meant to be the beneficial owner(s). It should be noted that the right to name a senior manager as beneficial owner should be considered on a case-by-case basis, whereas, in principle, only managers with an adequate degree of seniority – who have sufficient knowledge of the degree of exposure of the company to the risk of money laundering and terrorism financing activities, and at the same have sufficient seniority to take decisions that affect the risk of exposure of the company – can be identified as beneficial owners. Such director or employee is not required to be a member of the company’s Board of Directors.

2. In case of trusts (and other types of legal entities or legal arrangements similar to trusts), the following persons are considered as the “beneficial owners”:

a. the funder;

b. the trustee(s);

c. the protector, if any;

d. the beneficiaries, or where the individuals benefiting from the legal arrangement or entity have yet to be determined, the class of persons in whose main interest the legal arrangement or entity is set up or operates;

e. any other natural person exercising ultimate control over the trust by any means of direct or indirect ownership or by other means.

3. With regards to other legal entities or legal persons similar to trusts, the beneficial owners are the persons who hold a corresponding or analogous position with the persons mentioned under point 2.

4. In the case of legal persons governed by public law, the beneficial owner is the natural person or persons holding the position of senior management.