A politically exposed person, or PEP, is an individual whose prominent public function may create heightened exposure to bribery or corruption risk. Definitions and treatment vary by jurisdiction and may also cover family members and close associates.
Who may be considered a PEP?
Examples can include senior government officials, legislators, judges, military leaders, senior executives of state-owned enterprises and important political-party officials. The role and level of influence matter.
Does PEP status mean wrongdoing?
No. PEP status is a risk factor, not evidence of criminal conduct. Institutions should apply proportionate assessment rather than automatically treating the person as prohibited.
Which controls may apply?
- Confirm identity and public role
- Understand source of wealth and funds where required
- Obtain appropriate senior approval
- Apply enhanced ongoing monitoring
- Review connected entities, family members and close associates
How long does the status last?
Rules differ. Some regimes define a period after public office, while others require a risk-based assessment of continuing influence. A static database flag should not replace current review.
What should the record contain?
Document the source, role, dates, relationship, risk assessment, approvals and monitoring decision. Access to sensitive personal data should be restricted and legally justified.
