A politically exposed person (PEP) is a term used to describe an individual who has been entrusted with a prominent public function, such as a head of state, senior politician, government official, or senior executive of a state-owned corporation. Because of their position and influence, PEPs may be at a higher risk for involvement in corruption or other illegal activities. Financial institutions and other organizations are typically required to conduct enhanced due diligence when dealing with PEPs in order to identify and mitigate potential risks.
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This page was last updated on January 2, 2023.
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