The Wolfsberg Group is pleased to publish updated guidance as to how Financial Institutions (FIs) should handle the money laundering risks posed by Politically Exposed Persons (PEPs). This updates the guidance initially issued in 2003 and the Frequently Asked Questions issued in 2008.
Addressing the financial crime risks posed by PEPs remains as relevant now as it did when the regime was first introduced in the early 2000s. Large corruption investigations suggest that defences need to remain strong to combat bribery and corruption in general and, in particular, need to remain vigilant when dealing with senior, important and/or prominent PEPs.
The updated guidance lays out what the Wolfsberg Group considers to be the most effective way of managing PEP risk, which is to position the PEP control framework as part of the risk based approach (RBA) to the identification and management of financial crime risk, specifically as part of a holistic customer risk assessment process. This guidance provides advice to FIs on how to achieve that and how to subject customers who may be politically exposed to a more tailored and risk based control framework.
The full Publication Statement on Politically Exposed Persons (PEPs) issued by the Wolfsberg Co-Chairs and Executive Secretary and Wolfsberg Guidance on PEPs can be accessed below.
Loading...