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Learn how to apply additional AML/CFT measures to business relationships with politically exposed persons (PEPs) and their associates, as required by the FATF Recommendations. The guidance provides examples of red flags, sources of information and customer due diligence requirements.
A politically exposed person (PEP) is someone who holds a prominent public function that may pose a higher risk of corruption or money laundering. Learn how different countries define and regulate PEPs, and see examples of PEPs and their associates.
- Peps in Government Roles
- Peps in Organizations and Institutions
- Known ‘Close Associates’ Who Are Considered Peps
- Immediate Family Members Who Are Considered Peps
- Test Yourself: Are These People Peps?
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Legislative Bodies: An example is a Member of ParliamentExecutive Bodies:A PEP could range from the head of state down to the assistant ministersDiplomatic Roles:Ambassadors or chargé d’affaires would be considered PEPsJudiciary Bodies:Key people working within supreme courts, constitutional courts or high-level judicial bodiesCentral Financial Institutions:Examples here would be the Court of Auditors and members on the boards of central banksArmed Forces:In this situation a PEP rating would typically only apply to a high-ranking officerInternational Sports Committees:Members of these committees may be influenced to vote on the location of major sporting events/contracts for building venues, etc., so have recently been included by...Anyone with a close business relationship or joint beneficial ownership of legal entities or legal arrangements with a PEPAnyone who has the sole beneficial ownership of a legal entity which is known to have been set up for the benefit de facto of the PEPParents and children of PEPsSpouse or partnerSiblingsUncles and auntsThe mayor of ParisA former member of the board of directors for a state-owned enterpriseA famous actressHead of the Olympic CommitteeA Politically Exposed Person (PEP) is someone who, through their prominent position or influence, is more susceptible to being involved in bribery or corruption. Learn who or what could be a PEP, how to identify them, and why they pose a risk for financial crime compliance.
Aug 6, 2024 · Learn what a PEP is, how to identify and monitor them, and how to apply enhanced due diligence measures. Find out the FATF guidance, the 4 quadrants of PEP risk, and the sources of PEP information.
Aug 9, 2017 · Learn how to validate PEP screening results, perform risk analysis and mitigation, and comply with regulatory mandates. This guide covers the definition, types, and risks of PEPs, and provides a case study and tips for due diligence.
Aug 15, 2024 · Learn what a Politically Exposed Person (PEP) is, why PEP verification is crucial for AML compliance, and how to effectively use PEP Lists to mitigate risks in financial transactions.
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This document provides guidance on how to apply FATF Recommendations 12 and 22 to PEPs, their family members and close associates. It covers the definitions, sources of information, measures, supervision and other issues related to PEPs.
