Who counts as a PEP?

A politically exposed person is someone entrusted with a prominent public function: heads of state and government, ministers, members of parliament, senior judges, central bank board members, ambassadors, senior military officers and the leaders of state-owned companies, among others.

The rules usually extend to their family members and known close associates, because they can be used to move money on a PEP’s behalf.

Being a PEP is not wrongdoing. It means the customer carries a higher risk of bribery and corruption, so the rules call for enhanced due diligence: senior approval of the relationship, establishing where the customer’s wealth and funds come from, and closer monitoring.