Politically Exposed Person (PEP) Check

A Politically Exposed Person (PEP) check is a due diligence process conducted by financial institutions and other organizations to identify individuals who hold prominent public or political positions and assess the potential risks associated with their involvement in financial transactions. PEPs are individuals who have the capacity to abuse their position for personal gains or participate in corrupt activities. They usually include government officials, politicians, high-ranking military officers, and their immediate family members or close associates.

During a PEP check, institutions gather and verify information about these individuals, including their identity, position, and any potential affiliations with organizations or entities that could expose them to corruption or illicit activities. The goal of the check is to mitigate the risks associated with money laundering, bribery, corruption, and other financial crimes by ensuring proper scrutiny of transactions involving PEPs. Through this process, organizations aim to maintain regulatory compliance, protect their reputation, and safeguard against the risks posed by individuals with political influence and power.