What is a Politically Exposed PEP?
A Politically Exposed Person (PEP) is defined as an individual who has been entrusted with a prominent public role through which they are able to exercise influence and control.
Why are PEPs important?
Due to a PEP’s position and influence, it is acknowledged that they are potentially able to abuse their position for the purpose of committing money laundering and terrorist financing related offences. Previous case studies and analysis has shown that a PEP is more likely to engage in bribery and/or corruption.
Anti Money Laundering (AML) procedures should seek to identify a PEP where applicable and carryout enhanced due diligence for the duration of a business relationship.
What steps should be taken with PEPs?
From an Anti Money Laundering perspective additional care must first be taken to identify a PEP. When entering into a business relationship it is important to cross-check the individual against a recognised PEP database. You can find a free PEP search tool here to assist you with the identification process.
It is important not to stigmatise a PEP, but rather to understand the relationship and carryout enhanced due diligence and to monitor their activity for suspicious behaviour. These measures are preventative and not criminal in nature.
We provide a free PEP search tool that you can use here. This dataset is extracted and updated from the everypolitician.org repository which contains approximately 75,000 records spanning 233 countries.
When entering clients on the MLVerify platform we will automatically cross-check the individual’s for PEP and Sanction matches.