When navigating your ETZ account, you may come across references to the term PEP or “Politically Exposed Person.” A PEP is a natural person who is or has been entrusted with a prominent public function or a leading organizational role.This definition also extends to immediate family members and close associates of such individuals.

A. Entrusted with a prominent public function (Current or Former) Includes but is not limited to:

National-level leaders: Head of State or Head of Government
Senior political positions: Ministers and political officials of equivalent rank;
Senior civil, judicial, or military officials: Judicial officials whose rulings or decisions are not subject to appeal, senior military officers, etc.;
Executives of state-owned enterprises: Senior executives of state-owned corporations (with genuine economic or political importance);
Key political party officials
Royal family members: Members of ruling royal families with government responsibilities;
High-level officials of international organizations: Such as directors, deputy directors, members of the board, secretaries-general, or equivalent functions;
Senior religious officials: High-ranking clergy within religious institutions.

B. Entrusted with a leading role in an international organization Individuals holding leadership positions in international organizations who possess deep knowledge of and substantial influence over, such as: president, director, deputy director, secretary-general, member of the board, chairman of the board, vice-chairman of the board, or equivalent roles.

C. Family members of a PEP (as defined in A or B above) Includes:

Spouse, or a person considered to be equivalent to a spouse under national law;
Children and their spouses (or persons considered equivalent to a spouse under national law);
Parents;
Parents of a child’s spouse (or persons considered equivalent to a spouse under national law);
Grandparents.

D. Close Associates Includes:

A natural person known to be a close associate, who holds joint beneficial ownership of legal entities or arrangements with a PEP, or who has been assigned to establish such entities or arrangements for the benefit of a PEP.
A natural person who has sole beneficial ownership of a corporate entity or legal arrangement that is known to have been established for the benefit of a PEP.
Other individuals with close relations to a PEP under categories A and B.
Beneficial owners associated with a PEP in categories A, B, and other related categories.

Note: PEP identification involves not only the individual's official position but also covers their family members and close associates. This constitutes a critical risk identification process within Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) compliance.

What is a PEP (Politically Exposed Person)?