PEPs explained – new BPFI guide to a Politically Exposed Person (PEP)
Thursday 19th June – Banking & Payments Federation Ireland have published a new guide to a Politically Exposed Person (PEP) which aims to assist individuals in understanding and navigating what it means to be a PEP.
All financial institutions such as banks, building societies, An Post and credit unions have ‘Know your customer’ (KYC) obligations under law, which require them to collect and maintain certain information on all customers. Financial institutions are also legally required to take certain additional due diligence measures in regard to, what are defined in legislation as, Politically Exposed Persons or PEPs. These measures are preventative in nature and recognise that holders of certain roles are faced with increased exposure to risks due to the potential influence they can exercise.
The guide which is available to download here provides a user-friendly overview on a range of questions including who qualifies as a PEP or a close associate, why financial institutions have specific obligations when dealing with PEPs, and what individuals can expect if they are classified as one.
