Politically Exposed Person (PEP)
Definition
An individual who holds or has held a prominent public function, together with family members and known close associates, who presents a higher corruption and bribery risk because of their position and their ability to misuse public funds.
Related terms
- Beneficial owner
- The natural person who ultimately owns or controls an asset or entity, regardless of how many nominee or corporate layers stand in...
- Correspondent banking
- A relationship in which one bank (the correspondent) provides services such as clearing and settlement to another bank (the respondent), allowing the...
- Customer Due Diligence (CDD)
- The FATF-mandated set of measures requiring financial institutions to identify and verify customers and beneficial owners, understand the purpose and nature of...
- Enhanced Due Diligence (EDD)
- A heightened set of CDD measures applied to higher-risk customers or relationships, including PEPs, high-risk jurisdictions, and certain business types. EDD typically...
- Suspicious Activity Report (SAR) / STR
- A confidential report filed by a reporting entity to the national Financial Intelligence Unit when a transaction or pattern gives rise to...
Explained in
- AML Compliance: KYC, CDD, and Suspicious Activity ReportingAn individual who holds or has held a prominent public function, together with family members and known close associates, who presents a higher corruption and...