Politically Exposed Persons | LexisNexis Risk Solutions UK
A climber expertly scaling a treacherous wall of ice in full climbing gear

Politically Exposed Persons

Enter every business relationship with a clearer view of risk

A politically exposed person (PEP) is loosely defined as someone who has been entrusted with a prominent public function. The identification of PEPs, their family members and close associates is a key aspect of risk-based due diligence processes to prevent or at least detect and report potential money laundering.

Interpretation of the PEP definition varies by country, legislation, social, economic and cultural context but organisations who choose to do business with, or handle funds from a PEP without the appropriate due diligence procedures need to be aware of the possible consequences. Many companies choose to screen their clients against a PEP database not only to comply with anti-money laundering regulations but also as part of their overall risk based program.

WorldCompliance™ PEP ListPlay the PEP QuizPEP FAQs

The role of politically exposed persons in financial crime regulatory framework

Politically exposed persons are considered high risk in today’s regulatory environment because individuals who hold a prominent public function present greater integrity and corruption risks.

Corrupt practices such as bribery and fraud are often foundations for money laundering offences. Therefore PEPs feature significantly in most anti-bribery and anti-money laundering regulations.

Organisations have been imposed with very heavy AML fines for conducting business with PEPs without sufficient Know Your Customer (KYC) checks and Enhanced Due Diligence processes. However, determining that a client is a PEP does not prejudge a link to criminal activities and Financial Action Task Force (FATF) Guidance states that a PEP classification should not stigmatise the individual or prevent a business relationship. Instead it should form part of a wider risk evaluation process.

Companies also need to carefully examine foreign and domestic business partners that are either themselves PEPs, or who maintain close relationships with PEPs. You can download this whitepaper which discusses patterns of political corruption involving PEPs and how due diligence obligations can be addressed in line with the risk-based approach.

Politically Exposed Person List

To assist you with your Enhanced Due Diligence and AML PEP processes, our market leading WorldCompliance™ Data contains a PEP list with over a million politically exposed persons and foreign officials. This extensive source of information about higher risk individuals will help you determine whether your clients are politically exposed or a family member and close associate of a PEP.

You can access and search our PEP list with a free trial** of WorldCompliance™ Online Search Tool. Alternatively, complete the form below to discuss our batch and API screening solutions.

79% of AML professionals use political exposure as part of their customer risk rating

  • Geographic Location 86%
  • Political Exposure 79%
  • Transaction History 68%
  • Adverse Media 57%
  • Business Associates 56%
  • High Value Property Owned 19%
Source: ‘Current Industry Perspectives into AML Risk Management and Due Diligence’ – a 2015 survey of 800+ AML Compliance professionals. Research conducted by LexisNexis® Risk Solutions and ACAMS®.

PEP Quiz

Identifying who is a PEP can be a challenging process with so many types of classifications and regulatory context. Test your knowledge of who should or should not be classified as a politically exposed person with our short, interactive PEP Quiz, which features 3 levels of difficulty. How many can you get right?

Politically Exposed Person Quiz

Political corruption and the assessment of politically exposed persons

What are the patterns of political corruption and how can due diligence obligations be addressed in line with the risk-based approach?

Assessment of Politically Exposed Persons Whitepaper

Download Whitepaper

Request a free trial** of WorldCompliance Online Search Tool

To request a free trial** of our PEP list search tool or for more information on how we can help you with your compliance obligations, please call 029 2067 8555 or fill in your details below and a member of our team will be in touch shortly.

** Free trial offer available to individuals that are not currently subscribed to the WorldCompliance Online Search Tool. To be eligible, recipient must be 18 years of age or the age of majority in his/her country of residence, and in the country where the offer is made. Current customers are subject to the terms and conditions of your current services agreement with the applicable LexisNexis Risk Solutions entity. Usernames and Passwords are non-transferable and are not authorized to be shared. Use of the login credentials is limited to the addressee only. Promotional username must be activated to be eligible. Credits will not be issued. No purchase necessary. Void where prohibited. Other restrictions may apply.
WorldCompliance and Bridger Insight® XG services are not provided by “consumer reporting agencies”, as that term is defined in the US Fair Credit Reporting Act (15 U.S.C. Non FCRA § 1681, et seq.) (“FCRA”) and do not constitute “consumer reports”, as that term is defined in the FCRA. Accordingly, WorldCompliance and Bridger Insight XG services may not be used in whole or in part as a factor in determining eligibility for credit, insurance, employment or another purpose in connection with which a consumer report may be used under the FCRA. Due to the nature of the origin of public record information, the public records and commercially available data sources used in reports may contain errors. Source data is sometimes reported or entered inaccurately, processed poorly or incorrectly and is generally not free from defect. This product or service aggregates and reports data, as provided by the public records and commercially available data sources, and is not the source of the data, nor is it a comprehensive compilation of the data. Before relying on any data, it should be independently verified.