Politically Exposed Persons

What You Will Learn

• 1 Learn the definition and categories of politically exposed persons (PEPs) and understand why they pose elevated financial crime risks.
• 2 Understand the international regulatory framework, including FATF recommendations, regional directives, and national implementation variations.
• 3 Apply systematic methods to identify domestic and foreign PEPs, including family members and close associates, using reliable data sources.
• 4 Analyze risk factors such as country, industry, position, and transaction patterns to score and categorize PEP relationships appropriately.
• 5 Implement enhanced due diligence procedures for high-risk PEPs, including source of wealth verification and ongoing monitoring triggers.
• 6 Develop transaction monitoring systems that effectively screen for unusual activity involving PEPs and generate meaningful alerts.
• 7 Create reporting protocols for suspicious activity reports (SARs) related to PEPs, ensuring timely escalation and documentation.
• 8 Evaluate global variations in PEP regulations across major jurisdictions, including the EU, US, UK, and emerging markets.
• 9 Examine real-world case studies to understand common compliance failures and effective remediation strategies in PEP management.
• 10 Explore emerging trends such as beneficial ownership transparency, digital identity verification, and the impact of sanctions on PEP compliance.