Learn the definitions of politically exposed person (PEP), family member and close associate of a PEP.
According to "The Joint Money Laundering Steering Group, Prevention of money laundering/ combating terrorist financing, 2020 REVISED VERSION, GUIDANCE FOR THE UK FINANCIAL SECTOR", a PEP is defined as an individual who is entrusted with prominent public functions, other than as a middle-ranking or more junior official. Individuals entrusted with prominent public functions include:
- heads of state, heads of government, ministers and deputy or assistant ministers;
- members of parliaments or of similar legislative bodies;
- members of supreme courts, of constitutional courts or of other high-level judicial bodies the decisions of which are not subject to further appeal, except in exceptional circumstances;
- members of courts of auditors or of the boards of central banks;
- ambassadors, charges d’affaires and high-ranking officers in the armed forces (other than in respect of relevant positions at Community and international level);
- members of the administrative, management or supervisory boards of State-owned enterprises;
- and directors, deputy directors and members of the board or equivalent function of an international organisation.
Family members of a PEP include:
- a spouse or partner of that person;
- children of that person and their spouses or partners;
- and parents of that person.
Close associates of a PEP include:
- an individual who is known to have joint beneficial ownership of a legal entity or legal arrangement, or any other close business relations, with a PEP;
- and an individual who has sole beneficial ownership of a legal entity or legal arrangement which is known to have been set up for the benefit of a PEP.