What is a PEP?

A PEP (Politically Exposed Person or PEP) is a person that holds or has held a prominent political position or has an immediate family member or a close associate that holds or had held a prominent political position. More detailed information can be found below.

A person is a politically exposed person if they hold one or more of the following positions:

• head of state, head of government, minister, deputy minister or secretary of state;

• Member of Parliament or member of a similar legislative body;

• member of the board of a political party;

• member of a supreme court, constitutional court or any other high court that issues rulings that are not subject to appeal, except in exceptional circumstances;

• member of a court of auditors or of a board of directors of a central bank;

• ambassador, chargé d'affaires or senior officer of the armed forces;

• member of the management, supervisory or administrative body of a state enterprise;

• director, deputy director, member of the board of directors or holder of an equivalent position in an international organization.

A person is a family member of a politically prominent person if:

• they are the spouse or registered partner of a politically exposed person or if they are a person considered the equivalent to the spouse of a politically exposed person (e.g. they live with a politically exposed person);

• they are a child of a politically exposed person;

• they are the spouse or registered partner of a child of a politically exposed person or if they are a person who is considered the equivalent to the spouse of that child (e.g. they live with that child);

• they are a parent of a politically prominent person.

A person is known to be a close associate of a politically prominent person if:

• they are a person who is known to be the joint beneficial owner of a legal entity or legal arrangement with a politically exposed person, or who has other close business relationships with a politically exposed person;

• they are a person who is the sole beneficial owner of a legal entity or legal arrangement known to have been set up for the actual benefit of a politically exposed person.