Politically Exposed Persons (PEPs)
Politically Exposed Persons (PEPs). PEPs, defined as individuals holding prominent public positions, along with their close associates and family, are subject to enhanced scrutiny due to their higher risk of involvement in money laundering or terrorism financing. The guidelines outline three PEP categories (domestic, foreign, and international organization) and procedures for identifying and managing the risks associated with PEPs.
Enhanced Customer Due Diligence (ECDD) measures, including source of funds and wealth verification, are mandatory for high-risk PEPs. The document also provides indicators of suspicious activity and emphasizes the importance of ongoing customer due diligence, even after a PEP leaves their position. Finally, it clarifies that complying with these regulations does not necessarily preclude providing services to high-risk PEPs, provided ECDD is implemented and suspicious activity is reported.