A Politically Exposed Person (PEP) is a person in an influential and prominent political position operating within a domestic or foreign capacity. In their role as senior government officials, they have access to resources and power that can influence government, policy and people.
Sanctions are tools used by governments that can be applied to individuals, countries, groups, and companies to prohibit illicit activity and curb undesirable actions by certain high-risk persons or groups. For more information on sanctions, view our Sanctions Screening Best Practice Guide.
Sanctions can be compiled into Sanctions lists, which are preventative measures to change behaviours and prohibit illicit activity, including freezing assets that can be used to fund crime. Lists of PEPs, however, are created to provide organisations with the information they require to ensure that the activity associated with their customers, including their family members and close associates, is honest and abides by local laws. Fundamentally, lists of PEPs foster transparency between the government, the financial institution, and its customer base.