What is a PEP?

While there is no global standard for a politically exposed person (PEP), it is generally defined as a person who is directly entrusted to a public office or is closely related to such a person. According to the FATF (Financial Action Task Force) guidelines, a PEP is defined as:

  • a current or former senior official in the executive, legislative, administrative, military, or judicial branch of a foreign government (elected or not)
  • a senior official of a major foreign political party
  • a senior executive of a foreign government-owned commercial enterprise, being a corporation, business or other entity formed by or for the benefit of any such individual
  • an immediate family member of such individual (spouse, parents, siblings, children, and spouse’s parents or siblings)
  • any individual publicly known (or actually known by the relevant financial institution) to be a close personal or professional associate

Accuity has produced a handy infographic that summarises information on who should be classified as a Politically Exposed Person.