PEP
Politically exposed person: a person holding or having held a public office, as well as their close relatives and business partners. A category requiring enhanced verification in banking compliance.
Practical significance
PEP status is not an accusation and not a prohibition - it is an indication of a heightened level of attention. In practice it means more questions about the source of funds and a longer onboarding process. An explanation of the status prepared in advance substantially speeds up the checks.
Where it is used
- banking onboarding and servicing
- verification of transaction participants
- sanctions and compliance screening
- reputational risk assessment
What the term does not mean
Does not mean involvement in corruption. Nor does it automatically disappear upon leaving office: many organizations take historical status into account.
How it differs from «Adverse Media»
PEP is a formal category based on position and connections, adverse media is negative mentions in sources. The former is determined by role, the latter by publications. More about this term
Illustrative example
The owner sat on the supervisory board of a state-owned company eight years ago. For one bank this is a historical PEP, for another - it is not: the criteria for how far back to look differ.
Related terms, services and guides
Definition verified 3 August 2026
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