Politically Exposed Person (PEP)

Politically Exposed Person (PEP) is someone who holds or has held a significant public position, such as a government official, senior politician, or military leader. Due to their influence, PEPs are considered at higher risk for potential involvement in bribery, corruption, or money laundering. Financial institutions and businesses must apply enhanced due diligence when dealing with PEPs to mitigate these risks. This involves closely monitoring their financial transactions and maintaining transparency to ensure compliance with international regulations and standards aimed at preventing financial crimes.