Politically exposed person
A politically exposed person is an individual entrusted with a prominent public function under the applicable anti-money-laundering framework. Related family members and close associates may require similar risk treatment under relevant law. Firms identify and assess the relationship and apply the appropriate risk-based due diligence and approval requirements.
Worked example
A new client’s beneficial owner is a senior government official; the firm applies its risk-based procedures and obtains any required senior approval.
Common mistake
A PEP classification does not establish criminal conduct, and rules for domestic, foreign and related persons differ by jurisdiction.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |