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Who is a Politically Exposed Person (PEP)?

The Financial Action Task Force (FATF) describes a politically exposed person (PEP) as "an individual who is or has been entrusted with a prominent public duty. It is acknowledged that many PEPs are in situations that could be used for the purpose of committing money laundering offences and related predicate offences, such as corruption and bribery, as well as carrying out activity related to terrorism funding, due to their position and influence.

PEPs are also "those who currently hold or have formerly held significant public positions, as well as their immediate family members and close acquaintances, and covers both domestic and overseas PEPs."

PEPs may work for the government or other major institutions and organizations.
Please find a list of examples below:

  1. heads of State, heads of government, ministers and deputy or assistant ministers;
  1. members of parliament or of similar legislative bodies;
  1. members of the governing bodies of political parties;
  1. 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;
  1. members of courts of auditors or of the boards of central banks;
  1. ambassadors, chargés d'affaires and high-ranking officers in the armed forces;
  1. members of the administrative, management or supervisory bodies of State-owned enterprises;
  1. directors, deputy directors and members of the board or equivalent function of an international organisation.

No public function mentioned in points (1) through (8) is to be interpreted as involving middle-level or less senior officials.

Who qualifies as a PEP related individual?
A PEP person will in most situations recognise whether he/she qualifies as a Political Exposed Person.

Parties connected to relatives of politically exposed individuals: spouse, registered partner, sexual partner, cohabitant, parents, children, and spouses, registered partners, or cohabitants of a politically exposed person.

A close colleague or companion of someone who is politically exposed:

  1. a natural person who is the beneficial owner of a business or other legal person jointly with one or more politically exposed persons;
  1. a natural person who has sole beneficial ownership of a legal entity or legal arrangement which is known to have been set up for the de facto benefit of a politically exposed person;
  1. a natural person who is known to have any other close business relationship, with one or more politically exposed persons.
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