Politically Exposed Persons

This book provides essential guidance for enhancing measures against risks posed by politically exposed persons, aiming to improve compliance and supervisory effectiveness.

In recent years, the scrutiny surrounding financial relationships with politically exposed persons (PEPs) has intensified due to revelations of grand corruption and the misappropriation of state assets. Politically Exposed Persons offers valuable recommendations and examples of best practices to enhance the quality and effectiveness of measures implemented by regulatory authorities and banks regarding these high-risk individuals. PEPs include senior government officials, their family members, and close associates, all of whom can pose significant money laundering risks. Despite various efforts by financial institutions and regulatory bodies to mitigate these risks, the implementation of effective risk-based systems has often fallen short.

The book serves as a comprehensive guide for banks and regulatory authorities, focusing on the critical need to prevent corrupt PEPs from exploiting both domestic and international financial systems. By outlining strategies to improve compliance with international standards, Politically Exposed Persons aims to bolster supervisory effectiveness and enhance the overall integrity of the financial system. It emphasizes the necessity of establishing a robust PEP regime as a fundamental aspect of detecting and preventing the transfer of crime proceeds.

Furthermore, the book aligns with international frameworks such as the United Nations Convention against Corruption and the Financial Action Task Force's recommendations, which mandate that financial institutions adopt thorough measures for identifying and monitoring PEP customers. This essential resource is designed for individuals, governments, and organizations dedicated to combating corruption and money laundering, ultimately contributing to the recovery of stolen assets and the proceeds of corruption.