What Are the Latest PEP Regulations/Requirements?

There is no definitive international regulation and requirement, as every country will adopt (to a certain degree) the guidelines set forth by the Financial Action Task Force (FATF). This may lead to complexities and discrepancies for international organizations that span borders, so it is best to make sure that the global policy meets the most stringent standards for PEP due diligence.

FATF’s Recommendations 12 & 22 are suggestions for countries to adopt, but as a general rule or best practice, banks should heed the latest recommendations set forth from this organization.

For banks with operations in the European Union, the much-anticipated 4th European Union Anti-Money Laundering Directive will include additional requirements for PEP due diligence.