What is a politically exposed person (PEP)? Why money firms check
By SendPay Business · · 2 min read
A politically exposed person, or PEP, is someone who holds or has held an important public role, such as a senior politician, judge or head of a state-owned company. Money firms check for PEPs because such roles carry a higher risk of bribery and corruption.
Who counts as a PEP
The definition usually covers heads of state, ministers, members of parliament, senior judges, central bank board members, ambassadors, senior military officers and directors of state-owned companies. Close family members and known close associates are often checked too.
Being a PEP is not wrongdoing
A PEP is not suspected of anything just by holding the role. It simply means firms must take extra care to understand where their money comes from before and during the relationship.
What enhanced due diligence involves
- Screen new and existing customers against PEP lists.
- Ask about the source of the customer's wealth and funds.
- Get senior approval before opening or continuing the relationship.
- Monitor the account more closely on an ongoing basis.
Where SendPay fits
SendPay platforms are powered by licensed partners who carry out identity and compliance checks. SendPay tells you in writing which licences apply to your platform before you pay.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.