Who are politically exposed persons (PEPs)?

Politically exposed persons (PEPs) refer to individuals who hold prominent public positions, which makes them more susceptible to involvement in bribery and corruption due to their access to public funds and decision-making powers. This group typically includes high-ranking officials such as heads of state, ministers, judges, and senior executives of state-owned enterprises. The heightened risk associated with PEPs is a critical consideration for financial institutions and organizations as they implement anti-money laundering measures and customer due diligence protocols.

While individuals with private sector jobs or those in lower-level government roles do not hold the same level of power and influence as PEPs, retired public officials may also be under scrutiny but are not classified strictly as active PEPs unless they continue to have close ties to influential roles or political positions. Identifying and monitoring PEPs is essential in mitigating the risks of illicit activities and ensuring compliance with regulatory frameworks aimed at preventing money laundering and corruption.