In a time where controversial political headlines are the norm, politicians are being constantly criticised regarding their dodgy taxes, and “dirty money” passes through the hands of the government officials, it may seem more like a political drama than real life. However, it isn’t just fiction (nor has it ever been), so if you have a business, it’s time that you understand what a PEP is and what the laws surrounding them are.
Generally, a PEP is a “politically exposed person”. This is in reference to someone who is a prominent public figure and carries out a function in which they are trusted by the public.
The definition of a PEP can change, the criteria could vary from country to country or even company to company. Its seen as quite a broad phrase but some examples include:
These public figures present a higher risk of bribery, as there is a fear they could be corrupted and someone could take advantage of the influence this person may hold.
Therefore, a PEP isn’t just the influential person themselves that carries this reputation. It could include:
Basically, a PEP is anyone close enough to the politically exposed person in question that may be able to sway their influence through corruption, bribery, or in a position to help the individual exploit the public’s trust.
You’ve probably seen a lot of this if you’re a fan of Political TV dramas, but it happens in the real world too. Unfortunately, in the real world, it’s up to businesses to know the person they’re working with, and carry out the necessary checks to avoid the risk they may impose.