Politically Exposed Person - Politically Exposed Foreign Person or PEP (UK)

Politically Exposed Foreign Person or PEP (UK)

The UK definition of a PEP, as found in the Money Laundering Regulations 2007 are as follows: (This is one text, which is ultimately used by the Joint Money Laundering Steering Group when issuing their Guidance Notes.)

Section 14(5) of the ML Regulations define a PEP as:
“a politically exposed person” means a person who is —
(a) an individual who is or has, at any time in the preceding year, been entrusted with a prominent public function by —
i. a state other than the United Kingdom;
ii. a Community institution; or
iii. an international body, including a person who falls in any of the categories listed in paragraph 4(1)(a) of Schedule 2;
(b) an immediate family member of a person referred to in sub-paragraph (a), including a person who falls in any of the categories listed in paragraph 4(1)(c) of Schedule 2; or
(c) a known close associate of a person referred to in sub-paragraph (a), including a person who falls in either of the categories listed in paragraph 4(1)(d) of Schedule 2.

Where Schedule 2 provides the following clarification: Politically exposed persons
(1) for the purposes of regulation 14(5) are:
(a) individuals who are or have been entrusted with prominent public functions include the following—
i. heads of state, heads of government, ministers and deputy or assistant ministers;
ii. members of parliaments;
iii. members of supreme courts, of constitutional courts or of other high-level judicial bodies whose decisions are not generally subject to further appeal, other than in exceptional circumstances;
iv. members of courts of auditors or of the boards of central banks;
v. ambassadors, chargés d’affaires and high-ranking officers in the armed forces; and
vi. members of the administrative, management or supervisory bodies of state-owned enterprises;
(b) the categories set out in paragraphs (i) to (vi) of sub-paragraph (a) do not include middle-ranking or more junior officials;
(c) immediate family members include the following—
i. a spouse;
ii. a partner;
iii. children and their spouses or partners; and
iv. parents;
(d) persons known to be close associates include the following—
i. any individual who is known to have joint beneficial ownership of a legal entity or legal arrangement, or any other close business relations, with a person referred to in regulation
14(5)(a); and
ii. any individual who has sole beneficial ownership of a legal entity or legal arrangement which is known to have been set up for the benefit of a person referred to in regulation
14(5)(a).
(2) In paragraph (1)(c), “partner” means a person who is considered by his national law as equivalent to a spouse.

Read more about this topic:  Politically Exposed Person

Famous quotes containing the words politically, exposed, foreign and/or person:

    Long before Einstein told us that matter is energy, Machiavelli and Hobbes and other modern political philosophers defined man as a lump of matter whose most politically relevant attribute is a form of energy called “self-interestedness.” This was not a portrait of man “warts and all.” It was all wart.
    George F. Will (b. 1941)

    In the most desirable conditions, the child learns to manage anxiety by being exposed to just the right amounts of it, not much more and not much less. This optimal amount of anxiety varies with the child’s age and temperament. It may also vary with cultural values.... There is no mathematical formula for calculating exact amounts of optimal anxiety. This is why child rearing is an art and not a science.
    Alicia F. Lieberman (20th century)

    Frankly, I do not know how to effect a permanency in American foreign policy.
    Franklin D. Roosevelt (1882–1945)

    A person of mature years and ripe development, who is expecting nothing from literature but the corroboration and renewal of past ideas, may find satisfaction in a lucidity so complete as to occasion no imaginative excitement, but young and ambitious students are not content with it. They seek the excitement because they are capable of the growth that it accompanies.
    Charles Horton Cooley (1864–1929)