AML/CFTR 1.3.6 Politically exposed persons, their family members and associates

(1) A politically exposed person (PEP) means an individual who is, or has been, entrusted with prominent public functions. Unless the context requires otherwise, a reference to a PEP in these rules includes a family member of the PEP or a close associate of the PEP.

Examples of persons who can be PEPs
1 Heads of State or of government
2 senior politicians
3 senior government, judicial or military officials
4 members of Parliament
5 important political party officials
6 senior executives of state owned companies
7 members of senior management (directors, deputy directors and members of the board or equivalent functions) in international organisations.
(2) A family member of a PEP means an individual related to the PEP by blood, or by marriage, up to the second degree.

Examples of individuals related to a PEP in the first or second degree
1 the PEP's father and mother
2 the PEP's husband or wife
3 the PEP's father-in-law or mother-in law
4 the PEP's son or daughter
5 the PEP's stepson or stepdaughter
6 the PEP's grandfather and grandmother
7 the PEP's brother or sister
8 the PEP's brother-in-law or sister-in-law
9 the PEP's grandson or granddaughter
(3) A person is a close associate of a PEP if the person:
(a) is in partnership with the PEP in a legal person or legal arrangement;
(b) is associated with the PEP through a business or social relationship; or
(c) is a beneficial owner of a legal person or legal arrangement owned, or effectively controlled, by the PEP.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)
Amended by QFCRA RM/2020-1 (as from 15th August 2020)