Foreign Politically Exposed Person (Foreign PEP)

A foreign politically exposed person (foreign PEP) is someone entrusted with a prominent public function by a foreign country, such as a head of state, minister, senior judge, senior military officer, central bank governor or executive of a state-owned company, viewed from the standpoint of the institution serving them. It is one category of politically exposed person. Under FATF Recommendation 12, foreign PEPs always require enhanced due diligence: senior management approval, measures to establish source of wealth and source of funds, and enhanced ongoing monitoring, whereas domestic and international organisation PEPs are treated on a risk basis. US rules address similar people as senior foreign political figures. EU law applies the same measures to all PEPs, foreign or domestic. Family members and close associates are usually covered too. Also see politically exposed person screening.