Why do we need to verify if our customers are Politically Exposed Persons?

Politically Exposed Persons

Politically Exposed Persons (PEPs) are individuals who are or have been entrusted with prominent public functions. Amongst others, these include:

• • Heads of State, Heads of Government, Ministers, Deputy or Assistant Ministers, and Parliamentary Secretaries;
• • Members of Parliament or similar legislative bodies;
• • Members of the governing bodies of political parties;
• • Members of the superior, supreme, and constitutional courts or of other high level judicial bodies whose decisions are not subject to further appeal, except in exceptional circumstances;
• • Members of courts of auditors, or of the boards of central banks;
• • Ambassadors, chargé d’affaires and other high-ranking officers in the armed forces;
• • Members of the administrative, management or supervisory boards of state-owned enterprises; and
• • Anyone exercising a function equivalent to any of those set out above within an institution of the European Union or any other international body.

Immediate Family Members

Immediate family members of PEPs include:

• • The spouse, or any person considered to be the equivalent to a spouse;
• • The children and their spouses, or persons considered to be the equivalent to a spouse; and
• • The parents.

Close Associates

Close associates of PEPs include persons:

• • Known to have joint beneficial ownership of a body corporate or any other form of legal arrangement with a PEP;
• • Known to have close business relations with a PEP; and
• • Who have sole beneficial ownership of a body corporate or any other form of legal arrangement that is known to have been established for the benefit of a PEP.