Politically Exposed Persons (PEPs): An International Legal Quagmire Banks Complicity abets PEPs’ Money Laundering Activities
It is indeed prudent to look at how various Anti-Money Laundering regulatory bodies define PEPs in an attempt to curb the risks pose by PEPs in money laundering. The trail blazer among these global organizations is Financial Action Task Force (FATF) which defines PEPs as “individuals who are or have been entrusted with prominent public functions in a foreign country, for example Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials. Business relationships with family members or close associates of PEPs involve reputational risks similar to those with PEPs themselves. The definition is not intended to cover middle ranking or more junior individuals in the foregoing categories.