When using your ETZ account, you may encounter the term PEP (Politically Exposed Person). A PEP refers to individuals who currently hold or previously held certain important public functions or senior positions in organizations, as well as persons who have specific close associations with them.

A. Individuals in Important Public Functions (Current or Former) This includes, but is not limited to:

National-level leaders: Heads of state and heads of government;
Senior political officials: Ministers and political officials of equivalent rank;
Senior civil, judicial, or military officials: Judicial officers whose rulings or decisions are not subject to appeal, senior military commanders, etc.;
Senior executives of state-owned enterprises: Senior management personnel within SOEs who hold real economic or political influence.
Senior officials of political parties: High-ranking officials of major political parties;
Royal family members: Members of the royal family who perform governmental functions;
Senior officials of international organizations: Such as directors, deputy directors, board members, secretaries-general, or equivalent positions;
Senior religious leaders: Senior clergy within religious institutions.

B. Senior Leaders of International Organizations Individuals who hold leadership positions in international organizations and possess deep knowledge of and substantial influence over the institution’s operations. Examples include: President, Director/Deputy Director, Secretary-General, Board Member, Chairman/Vice-Chairman, or equivalent roles.

C. Family Members of the Above A/B Category PEPs

Spouses or individuals recognized as equivalent under local law;
Children and their spouses (or persons considered spouses under local law);
Parents;
Parents of the child’s spouse (or legal equivalent);
Grandparents.

Other Relationships Potentially Classified as PEP Connections

Natural persons known to be close associates of a Category A/B PEP, who jointly hold beneficial ownership of a company/legal arrangement with the PEP, or who are designated to establish relevant entities/arrangements for the benefit of the PEP.
Natural persons who are the sole beneficial owner of an enterprise or other legal arrangement which is known to be established for the benefit of a PEP.
Natural people have other close connections with Category A/B PEP.
Beneficial owners of legal entities or arrangements known to be established for the benefit of the PEPs in Categories A, B, and the related categories mentioned above.

Key Point: The identification of a PEP involves both the individual's own official capacity and extends to their family members and close associates. This is a critical risk identification step in AML/CTF compliance.

What is a PEP (Politically Exposed Person)?