Politically Exposed Person (PEP)

A Politically Exposed Person (PEP) is an individual who holds, or has held, a prominent public position or function. This includes senior government officials, heads of state, members of parliament, judges, military leaders, senior executives of state-owned enterprises, and high-ranking political party officials.

Because of their position and potential access to public funds or decision-making power, PEPs are considered to present a higher risk of involvement in activities such as bribery, corruption, or money laundering.

Financial institutions and Virtual Asset Service Providers (VASPs) are required to identify PEPs and apply enhanced due diligence measures when establishing or maintaining business relationships with them, as part of their anti-money laundering (AML) and counter-terrorist financing (CTF) obligations.

Family members and close associates of PEPs may also fall under this classification, given their potential to benefit from or influence the PEP’s position.