Who is a Politically Exposed Person?
PEP is an individual who holds a prominent public position or a position of authority, which exposes them to a higher risk of corruption or financial crime.
Where can I find the PEP list?
The PEP list is maintained by various companies that provide risk management services and compliance solutions to financial institutions, government agencies, and other organizations. BizProspex maintains its own database of PEPs and other high-risk individuals and entities and provides access to this database to our customers.
What are the criteria for being included in a PEP list?
The criteria for being included in a PEP list vary depending on the organization that maintains the list. In general, individuals who hold high-level public positions or positions of authority, such as government officials, heads of state, and members of the military or judiciary, are considered to be politically exposed.
Who maintains Politically Exposed Persons search lists?
PEP lists are maintained by various organizations, including governments, financial institutions, and other entities that are required to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
Does a PEP become a red flag for money laundering?
A PEP status is considered a red flag for potential money laundering or terrorist financing activities. Due to their position and access to resources, PEPs are considered higher-risk individuals for financial crimes such as money laundering.
What are the consequences of being on a PEP list?
Being on a PEP list can result in increased scrutiny from financial institutions and other organizations that are required to comply with AML and CTF regulations. This can make it more difficult for individuals on the list to conduct financial transactions and access financial services.
