Definition of a Politically Exposed Person:
Legislative Decree No. 231/2007 (as amended by Legislative Decree No. 90/2017) provides that “Politically Exposed Person” means: “a natural person who holds or has held, within the past year, important public offices, as well as their family members and those known to have close ties with such a person,” and means:
- “Natural persons who hold or have held important public offices” means: a) heads of state, heads of government, ministers and deputy ministers or undersecretaries, regional presidents, regional councilors, mayors of provincial capitals or metropolitan cities, and mayors of municipalities with a population of at least 15,000; b) members of Parliament and regional councilors; c) members of the central governing bodies of political parties; d) Justices of the Constitutional Court, judges of the Court of Cassation or the Court of Auditors, State Councilors, and other members of the Administrative Justice Council for the Region of Sicily; e) members of the governing bodies of central banks and independent authorities; f) ambassadors, chargés d’affaires, and high-ranking officers of the armed forces; g) members of the administrative, management, or supervisory bodies of enterprises controlled, even indirectly, by the Italian State or by a foreign state, or in which the Regions, provincial capitals, metropolitan cities, and municipalities with a total population of at least 15,000 hold a majority or total stake; h) general directors of local health authorities (ASLs), hospital systems, university hospital systems, and other entities of the National Health Service; i) directors, deputy directors, and members of the management body or individuals performing equivalent functions in international organizations. None of the categories specified above include mid-level or lower-level officials. The categories referred to in subparagraphs (a) through (i) include, where applicable, positions at the European and international levels.
- “Family members” means: a) a spouse; b) children and their spouses; c) persons in a civil union, de facto cohabitation, or similar arrangement with the person referred to in item 1 or with that person’s children; d) parents.
- For the purposes of identifying the persons with whom the individuals referred to in item 1 are known to have close ties, reference is made to: a) natural persons linked to the individual referred to in item 1 by virtue of joint beneficial ownership of legal entities or another close business relationship; b) natural persons who hold, merely formally, total control over an entity that is known to have been established, in fact, in the interest and for the benefit of a person referred to in paragraph 1.
- Without prejudice to the application, based on risk, of enhanced customer due diligence requirements, when a person has ceased to hold high-level public office for a period of at least one year, the entities subject to this decree are not required to consider that person a politically exposed person.
To identify the Beneficial Owner:
Definition pursuant to Legislative Decree No. 231/2007 (as amended by Legislative Decree No. 90/2017): the natural person or persons, other than the client, in whose interest the ongoing relationship is ultimately established, the professional service is provided, or the transaction is carried out. Specifically, in the case of corporations:
- a) Direct ownership is indicated by a natural person holding a stake exceeding 25 percent of the customer’s capital. b) Indirect ownership is indicated by a stake exceeding 25 percent of the customer’s capital, held through subsidiaries, trust companies, or through an intermediary.
- In cases where an examination of the ownership structure does not allow for the unambiguous identification of the natural person or persons to whom direct or indirect ownership of the entity is attributable, the beneficial owner is the natural person or persons who: (a) control the majority of the votes that may be cast at an ordinary shareholders’ meeting; b) control over a sufficient number of votes to exercise a dominant influence at an ordinary shareholders’ meeting; c) specific contractual arrangements that enable them to exercise a dominant influence.
- If the application of the criteria set forth in the preceding paragraphs does not allow for the unambiguous identification of one or more beneficial owners, the beneficial owner shall be the natural person or persons holding administrative or management powers within the company. Trustees of express trusts, governed by Law No. 364 of October 16, 1989, shall obtain and maintain adequate, accurate, and up-to-date information regarding the beneficial ownership of the trust, meaning information relating to the identity of the settlor, the trustee or trustees, the guardian or any other person acting on behalf of the trustee (if any), the beneficiaries or class of beneficiaries, and other natural persons exercising control over the trust, as well as any other natural person who ultimately exercises control over the assets transferred to the trust through direct or indirect ownership or by other means. Trustees of express trusts shall retain such information for a period of not less than five years following the termination of their status as trustees and shall make it readily available to the authorities.