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Risk & AML · PEP

What is a PEP (Politically Exposed Person)?

Someone in a prominent public role who needs extra scrutiny.

Definition

A Politically Exposed Person holds a prominent public function — or is closely connected to someone who does — which raises the risk of bribery or corruption and calls for enhanced due diligence.

In plain English

In plain English: a PEP (Politically Exposed Person) is someone in a prominent public role — or close to someone who is — which makes them higher-risk for bribery or corruption. It doesn’t mean they’ve done anything wrong; it just means they warrant extra checks.

Why it matters

Identifying PEPs lets you apply the right level of review rather than treating every customer the same, and demonstrates a risk-based approach to regulators.

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FAQ

Frequently asked questions

What does PEP stand for?

PEP stands for Politically Exposed Person.

Is being a PEP bad?

No. Being a PEP simply flags higher risk and the need for enhanced due diligence — it is not an accusation of wrongdoing.

How are PEPs identified?

PEP screening checks a person against lists of public officials and their close associates, usually alongside sanctions and adverse-media checks.

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