What does a Politically Exposed Person (PEP) mean?

An individual who is or has been entrusted domestically or by foreign country with prominent public functions, for example Head of State or of government, senior politician, senior government, judicial or military official, senior executive of state owned corporation, important political party official; or

Person who is or has been entrusted with a prominent function by an international organisation which refers to a member of senior management, i.e. director, deputy director and member of the board or equivalent functions.

The definition of PEP is not intended to cover middle ranking or more junior individuals in the foregoing categories.

Source: GUIDELINES ON PREVENTION OF MONEY LAUNDERING AND TERRORISM FINANCING FOR REPORTING INSTITUTIONS IN THE CAPITAL MARKET SC-GL/AML-2014 (R2-2021), Issued on January 2021