What is considered a PEP?

What is considered a PEP?

A politically exposed person (PEP) is defined by the Financial Action Task Force (FATF) as an individual who is or has been entrusted with a prominent public function.

How long is a person considered a PEP?

“politically exposed person” means an individual who is, or has at any time in the preceding 12 months been, entrusted with a prominent public function, including either of the following individuals (but not including any middle ranking or more junior official):

How do you check if a person is a PEP?

You can check to see if your name is on a PEP register by viewing your Multi Agency Credit Report with checkmyfile.

Who is classed as a politically exposed person PEP?

A politically exposed person (PEP) is someone who’s been appointed by a community institution, an international body or a state, including the UK, to a high-profile position within the last 12 months.

Are all PEPs high risk?

While Financial Action Task Force (FATF) guidance3 recommends that all foreign PEPs should automatically be classified as high risk, the Wolfsberg Group advocates for the application of an RBA for all PEPs, whether foreign or domestic.

Is PEP screening mandatory?

The Statement affirms that (i) there is no regulatory requirement, and no supervisory expectation, for banks’ Bank Secrecy Act (BSA) / anti-money laundering (“AML”) programs to include “unique, additional due diligence steps” for customers who are PEPs and (ii) there is no regulatory requirement for banks to screen …

Why PEP is high-risk?

The most important reason for the detection of PEPs is that they are defined as high-risk people because they have more opportunities to earn illegal income such as money laundering, terrorism financing, corruption, and bribery.

Can you deal with a PEP?

Politically Exposed Persons (PEP’s) retain vital information and funds which could be targeted with bribery. Through achieving compliance with the Financial Action Task Force (FATF) guidelines and the Money Laundering Regulations 2007, an organisation will be able to deal with PEP’s fairly and lawfully.

Why are PEPs considered high risk?

PEPs are higher-risk clients for institutions and financial firms to onboard, simply because they are exposed to more opportunities to accept bribes, be involved in corruption by virtue of their position and launder money.

What is PEP risk?

The definition of politically exposed person (PEP) is an individual with a high profile political role, or who has been entrusted with a prominent public function. They present a higher risk for involvement in money laundering and/or terrorist financing because of the position they hold.

Who is a Politically Exposed Person ( PEP ) in FATF?

1. A politically exposed person (PEP) is defined by the Financial Action Task Force (FATF) as an individual who is or has been entrusted with a prominent public function. Due to their position and influence, it is recognised that many PEPs are in positions that potentially can be abused for the

Why are PEPS important to the FATF Recommendations?

Many PEPs hold positions that can be abused for the purpose of laundering illicit funds or other predicate offences such as corruption or bribery. Because of the risks associated with PEPs, the FATF Recommendations require the application of additional AML/CFT measures to business relationships with PEPs.

What’s the kids definition of the word Pep?

Kids Definition of pep (Entry 1 of 2) : brisk energy or liveliness Being full of pep, he ran to school.

Who is considered to be a pep in the UK?

In addition, any close business associate or family member of such a person will also be deemed as being a risk, and therefore could also be added to the PEP list. Anyone in any of the following roles should be considered a potential PEP. Executive Bodies: A PEP could range from the head of state down to the assistant ministers