PEP-Screening Matrix
If people are elected to prominent political positions or entrusted with high-profile tasks, they should be classified as Politically Exposed Persons (PEP) to account for the increased risk of involvement in money laundering or terrorist financing.
PEP Screening Requirements around the world
A globally accepted definition of a politically exposed person (PEP) may not exist, but the Financial Action Task Force (FATF) defines a PEP as someone who holds or has held a significant public position.
While specific terms and screening requirements may vary by jurisdiction, most financial authorities categorize PEPs into three groups:
Foreign PEPs
These are individuals elected or appointed to prominent public roles in foreign countries. They can include heads of state, government officials, military officers, or members of the judiciary. Senior executives of state-owned companies or influential political party members also fall under this category.
Domestic PEPs
This category covers individuals elected or appointed to prominent public roles within their own country. It includes heads of state, government officials, political party members, military personnel, judiciary members, and senior executives.
International PEPs
Individuals holding prominent positions in international organizations, such as company directors or board members, are classified as international PEPs.
PEP Screening Matrix by Countries
The following PEP screening matrix illustrates the different requirements for PEP screening in selected countries.
| Country | Obligation for PEP screening | Obligation for foreign PEP screening | Obligation for domestic PEP screening | Obligation for international PEP screening |
|---|---|---|---|---|
| Egypt | Yes | Yes | No | No |
| Albania | Yes | Yes | Yes | Yes |
| Brazil | Yes | Yes | Yes | Yes |
| Canada | Yes | Yes | Yes | Yes |
| Chile | Yes | Yes | Yes | No |
| China | Yes | Yes | No | Yes |
| Germany | Yes | Yes | Yes | Yes |
| France | Yes | Yes | Yes | Yes |
| United Kingdom | Yes | Yes | Yes | Yes |
| India | Yes | Yes | No | No |
| Iran | Yes | Yes | No | Yes |
| Japan | Yes | Yes | No | No |
| Mexico | Yes | Yes | Yes | Yes |
| New Zealand | Yes | Yes | No | No |
| Saudi Arabia | Yes | Yes | Yes | Yes |
| Singapur | Yes | Yes | Yes | Yes |
| South Africa | Yes | Yes | Yes | Yes |
| South Korea | Yes | Yes | No | No |
| Turkey | No | No | No | No |
| United States of America | Yes | Yes | No | Yes |