A politically exposed person (PEP) is defined by the Financial Action Task Force (FATF) as “an individual who is or has been entrusted with a prominent public function. Due to their position and influence, it is recognised that many PEPs are in positions that potentially can be abused for the purpose of committing money laundering offences and related predicate offences, including corruption and bribery, as well as conducting activity related to terrorist financing. (...)”. Also, PEPs are “individuals who are, or have been, entrusted with prominent public functions and their family members and close associates, and includes both domestic and foreign PEPs”.
PEPs can hold a position in either a government or other large organisations and institutions.
Please find a list of selected examples below:
- Members of Parliament
- Head of states and ministers
- People working for supreme court and other high-level juridical bodies
- Senior staff and management of State-Owned Enterprises
Who counts as Immediate Family Members of PEPs?
- Parents and children of PEPs
- Spouse or partner
- Uncles and aunts
- Even slightly indirect family members (such as in-laws) will be considered as a politically exposed person
At Coinify, we are legally obliged to establish whether you, as a customer, might have any political connection. Consequently, if you are a PEP or an immediate family member who is a PEP we will simply ask you to do an additional source of funds check which is part of the standard procedures on handling PEPs.