A relative close associate (RCA) of a politically exposed person (PEP) is an individual who has a close personal relationship with the PEP. This could include a family member, such as a spouse, child, or sibling, or it could refer to a close business associate or friend of the PEP. RCAs may also be at a higher risk for involvement in corruption or other illegal activities because of their relationship with the PEP. Financial institutions and other organizations may be required to conduct enhanced due diligence when dealing with RCAs in order to identify and mitigate potential risks.
This page was last updated on January 2, 2023.