Politically Exposed Person

What's a Politically Exposed Person?

A Politically Exposed Person (PEP) is someone who holds a prominent public position or function in a government body or international organisation and the immediate family and close associates of such a person.

Examples of PEPs  include:

  • Heads of State or government
  • senior politicians
  • senior government
  • judicial or military officials
  • senior executives of State enterprise, corporations
  • important political party officials.  

A PEP doesn’t include middle ranking or junior people in these positions or their distant relatives or associates.

What are the three categories of PEPs?

Chapter 1 of the Anti-Money Laundering and Counter-Terrorism Financing Rules defines three categories of PEPs:

  • Domestic PEPs are individuals who hold a prominent public position or function in an Australian government body.
  • Foreign PEPs are individuals who hold a prominent public position or function in a government body of a foreign country.
  • International organisation PEPs are individuals who hold a prominent public position or function in an international organisation.