A PEP is an individual who holds a prominent public position or role in a government body or international organisation, either in Australia or overseas. Immediate family members and/or close associates of these individuals are also considered PEPs.
What does the name PEPs mean?
Energy and high spirits; vim: “The duchess is full of pep, that particularly American word that expresses precisely her energy and gaiety” (Suzy Menkes). tr.v. pepped, pep·ping, peps. To bring energy or liveliness to; invigorate: The good news pepped him up. [Short for pepper.]
What does PEPs stand for in banking?
PEPs (as well as their family members and persons known to be close associates) are required to be subject to undertake enhanced due diligence by a reporting organization in general.
Which are examples of PEPs?
Examples of PEPs include heads of state, government ministers or equivalent politicians, senior government executives, high-ranking judges, high-ranking military officers, central bank governors, or board members or executives of an international organisation.
Who can be PEPs?
Domestic PEPS: an individual that holds a prominent public position or function domestically. This includes the Head of State or government, senior executives and financial regulators.
What is PEP in risk?
Download pdf ( 957kb) A politically exposed person (PEP) is an individual who is or has been entrusted with a prominent function. Many PEPs hold positions that can be abused for the purpose of laundering illicit funds or other predicate offences such as corruption or bribery.
What is PEP policy?
In order to ensure your organization fully complies with financial crime compliance regulations, it is essential that you and your team are aware of who or what a Politically Exposed Person (PEP) could potentially be, in order to identify them and carry out enhanced due diligence procedures.
How do you check for PEPs?
Businesses are not required to perform extensive investigations to determine if an individual is a PEP. Rather, this can be achieved via a simple AML check which includes a screen against a register of publicly known individuals with public functions, their associates and close family.
What is PEP activity?
Political Exposed Persons (PEPs) are defined as high-risk customers with more excellent opportunities than ordinary citizens to acquire assets through illegal means such as taking bribes and money laundering. Therefore, PEPs must be identified and screened in financial institutions because of their risks.
Who are PEPs in KYC?
The broad definition of a PEP, as stipulated by the FATF’s Recommendation 12, is that it is any individual who has served public functions both in the past and present. This includes politicians, state officials, heads of government, as well as high ranking employees of state-owned companies.
Why is a PEP important?
Politically exposed persons (PEP) pose a higher risk than traditional customers to financial institutions. Therefore, PEPs screening is an important aspect of Know Your Customer (KYC) and anti-money laundering (AML) policies.
Why a PEP is high risk?
PEP Risk
Relationships with PEPs may represent increased risks due to the possibility that individuals holding such positions may misuse their power and influence for personal gain or advantage, or for the personal gain or advantage of close family members and close associates.
What are PEP three values?
The PEP vision, mission and values verify their focus on exceptional customer service that results in delighted customers. The company values honesty, passion and resourcefulness.
What is PEP verification?
A PEP background check looks to determine if prospective customers are politically exposed persons (PEPs) based on their role in governments or other public agencies.
What are the 3 stages of money laundering?
What are the 3 Stages of Money Laundering?
- Placement.
- Layering.
- Integration/extraction.
How do you manage PEP risk?
Mitigating the risk of politically exposed persons
- Outsource it. While the definition of a PEP is straightforward, the process of identifying them and their associates can be tricky.
- Create comprehensive internal PEP policies.
- Conduct ongoing monitoring.
- Establish risk-control procedures.
- Consult additional resources.
Do I need PEP?
How Do You Know If You Need PEP? PEP may be right for you if you are HIV-negative or don’t know your HIV status, and you think you may have been exposed to HIV in the last 72 hours: During sex (for example, you had a condom break with a partner of unknown HIV status or a partner with HIV who is not virally suppressed)
What are KYC 4 Elements?
The KYC Policy consists of the following four key elements.
- Customer Acceptance Policy.
- Customer Identification Procedures.
- Monitoring of Transactions.
- Risk Management.
What are the three 3 components of KYC?
KYC process includes ID card verification, face verification, document verification such as utility bills as proof of address, and biometric verification.
Are members of the royal family PEPs?
However, the Wolfsberg Group and the Financial Action Task Force (FATF) define a PEP as a natural person of public functions (domestic or international) including, but not limited to, heads of state, senior judicial officials, and members of royal families.
What does PEP mean in Italian?
[pɛp ] (informal) dinamismo ⧫ vitalità to put some pep in vivacizzare.