What is a PEP?

A PEP is a politically exposed person. This is someone who has been entrusted with prominent public functions in a country or territory. Under anti-money laundering regulations, additional scrutiny is required when working with PEPs to mitigate the higher levels of risk they bring.

Examples of who might be classed as a PEP:

• Heads of state, heads of government, ministers, and deputy or assistant ministers
• Members of Parliament
• Members of courts of auditors or of the boards of central banks
• Ambassadors, chargés d’affaires and high-ranking officers in the armed forces
• Members of the administrative, management or supervisory bodies of state-owned enterprises
• Members of supreme courts, constitutional course or other high-level judicial bodies whose decisions are not generally subject to further appeal, except in exceptional circumstances
• Senior executives, including directors, deputy directors and members of the board, or equivalent of state-owned corporations

PEPs also include:

• The person’s family members
• Close business associates
• Beneficial owners of the person’s property (someone who enjoys the benefits of ownership even though the title of the property is in another person’s name)