11 Dec What is a Politically Exposed Person?
A politically exposed person or a PEP as they are better known, is someone who has access to public influence or public money, for example a politician. With having this position, it will make that person or persons more susceptible to corruption or other criminal activity. Other roles which would be classified as a PEP would be:
- Heads of state
- Members of high-level judicial bodies
- Ambassadors of foreign countries
- Directors of supranational enterprises
- Members of central banks
- Senior officers of the armed forces
- Immediate family members of PEP’s
- Close associates of PEP’s
How are PEPs identified?
Any PEPs should be identified at the onboarding phase or during the lifecycle of the relationship, whether it is by default as the potential customer is a Government entity or at the time of performing the respective screening on the customers controllers, owners or associate. The result can highlight a PEP, which will require for the Compliance Officer to be made aware which triggers the Enhance Due Diligence process.