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.