BDSwiss EU

What is the meaning of Politically Exposed Person (PEP)?

Anti-Money Laundering legislation defines PEP as a natural person who is or who has been entrusted with prominent public
functions and includes the following:

  1. heads of State, heads of government, ministers and deputy or assistant ministers;
  2. members of parliament or of similar legislative bodies;
  3. members of the governing bodies of political parties;
  4. members of supreme courts, of constitutional courts or of other high-level judicial bodies, the decisions of which are not subject to further appeal, except in exceptional circumstances;
  5. members of courts of auditors or of the boards of central banks;
  6. ambassadors, chargés d’affaires and high-ranking officers in the armed forces;
  7. members of the administrative, management or supervisory bodies of State-owned enterprises;
  8. directors, deputy directors and members of the board or equivalent function of an international organization.

 
No public function referred to in points (a) to (h) shall be understood as covering middle-ranking or more junior Officials;

‘family members’ includes the following:

  1. the spouse, or a person considered to be equivalent to a spouse, of a politically exposed person;
  2. the children and their spouses, or persons considered to be equivalent to a spouse, of a politically exposed person;
  3. the parents of a politically exposed person;

 
‘persons known to be close associates’ means:

  1. natural persons who are known to have joint beneficial ownership of legal entities or legal arrangements, or any other close business relations, with a politically exposed person;
  2. natural persons who have sole beneficial ownership of a legal entity or legal arrangement which is known to have been set up for the de facto benefit of a politically exposed person.

 
Definition of Immediate Family Member & Close Associates of a PEP: The legislation extends the requirement to apply Enhanced customer due diligence to an immediate family member, or a close associate, of a PEP.

In the case the above is applicable to you, please inform our Back Office Team in writing at [email protected] accordingly.

Back to Help Center

Was this helpful?

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.5 % of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. General Risk Disclosure