What are PEPs?

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politically exposed person” (PEP) is a term describing someone who has been entrusted with a prominent public function. A PEP generally presents a higher risk for potential involvement in bribery and corruption by virtue of their position and the influence that they may hold. The terms politically exposed person and senior foreign political figure are often used interchangeably, particularly in international forums.

The term PEP is typically used referring to customers in the financial services industry, while ‘foreign official’ refers to the risks of third-party relationships in all industries.  It is not illegal to provide banking services to a PEP however the institution should provide additional monitoring and governance of such account to monitor for transactions that may be linked to this PEP status which may be linked to bribery or corrupt practice 

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