Who can be considered as PEP?
A politically exposed person(PEP) is a natural person, who at the time of completing the agreement or in the previous 12 months has performed prominent public functions (e.g. head of state, head of government, minister, deputy minister or assistant minister, member of parliament, mayor, judge of the supreme or constitutional court, member of the supervisory board of a state audit institution or central bank, ambassador, chargé d’affaires, a senior officer of the Defence Forces, member of a directing, supervisory or administrative body of a state company), as well as their family members (spouse or a partner equal to a spouse, children and their spouses or partners, parents) and close associates.
Why PEP is high risk?
A PEP (Politically Exposed Person) is high risk due to their potential involvement in corruption, bribery, or misuse of public funds. Their influence and access to resources increase the risk of money laundering, which is why enhanced due diligence is required.
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