PEP (Politically Exposed Persons)

A Politically Exposed Person (PEP) is an individual who holds or has held a significant public position, such as a government official, politician, or senior executive in state institutions. Due to their influential roles, PEPs are considered at higher risk for involvement in corruption, bribery, or money laundering. Financial institutions and organizations use special procedures to monitor transactions involving PEPs to ensure transparency and prevent illicit activities. This classification helps manage risks related to corruption and protects the integrity of financial systems.