INVESTING AS A POLITICAL EXPOSED PERSON (PEP).
This article will discuss investing as a so-called politically exposed person (PEP).
If you are interested in investing as a PEP, please email me — email@example.com
What is a PEP?
It isn’t just senior political leaders, like the ones you can see on the picture above, that are PEPs.
A PEP is defined as somebody in a senior politically or military role, that has been entrusted with public positions of power and money.
So a senior military leader, even if they are apolitical, can be defined as a PEP, as can an ambassador to a country.
Likewise, family members of PEPs are also considered politically exposed themselves, because they can indirectly be used to launder money.
What are the risks for the financial institutions?
The biggest risks for the financial institutions accepting PEPs is:
- Legal risks of being taken to court. In extreme cases of course, terrorist groups and corrupt individuals can blackmail institutions. In less extreme cases, governments can take institutions to court if they feel they need to recoup corrupt money.
To carry on reading click here.