A politically exposed person (PEP) is an individual who is or has been entrusted with a prominent function by a governmental body. Many PEPs hold positions that can be abused to launder illicit funds and make them more liable to corruption or bribery. Close persons – the term “close persons” (of a politically exposed person) is used in the meaning provided by the law of Ukraine “Corruption Prevention ”, i.e., people who live together, share common household and have rights and obligations in common with the entity mentioned in part one of the Article 3 of the Law (except persons. Politically exposed persons (PEPs) are high risk clients according to the international anti-money laundering standards. Search online for PEPs, their close associates and affiliated entities. Politically Exposed Persons (PEPs) are individuals who are or have been entrusted with prominent public functions in a foreign or domestic country; for example, Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state-owned corporations, or important political party officials.
In order to ensure your organisation fully complies with the latest financial PEP regulations, it is essential that you and your team are aware of who or what a Politically Exposed Person (PEP) could potentially be.
Providing a definitive list of who could be classed as a PEP is difficult, as the criteria is so broad; international definitions vary and the Financial Action Task Force (FATF) is frequently issuing updated recommendations.
In basic terms, a Politically Exposed Person is someone who, through their prominent position or influence, is more susceptible to being involved in bribery or corruption. In addition, any close business associate or family member of such a person will also be deemed as being a risk, and therefore could also be added to the PEP list.
The Basic Criteria for Deciding who is a Politically Exposed Person
Anyone in any of the following roles should be considered a potential PEP.
PEPs in Government Roles
- Legislative Bodies: A good example here would be a Member of Parliament
- Executive Bodies: A PEP could range from the head of state down to the assistant ministers
- Diplomatic Roles: Ambassadors or charges d’affaires would be considered PEPs
- Judiciary Bodies: Key people working within supreme courts, constitutional courts or high-level judicial bodies
- State-Owned Enterprises: A PEP would typically be anyone from a senior executive upwards. However, even former members of the board of directors no longer associated with an organisation may retain influence and still be flagged as PEPs
PEPs in Organisations and Institutions
- Central Financial Institutions: Examples here would be the Court of Auditors and members on the boards of central banks
- Armed Forces: In this situation a PEP rating would typically only apply to a high-ranking officer
- International Sports Committees: Members of these committees may be influenced to vote on the location of major sporting events/contracts for building venues, etc., so have recently been included by FATF under their definition of a PEP
Known ‘Close Associates’ who are Considered PEPs
- Anyone who has a close business relationship or joint beneficial ownership of legal entities or legal arrangements with a PEP
- Anyone who has the sole beneficial ownership of a legal entity which is known to have been set up for the benefit de facto of the PEP
Immediate Family Members who are Considered PEPs
- Parents and children of PEPs
- Spouse or partner
- Siblings
- Uncles and aunts
- Even slightly indirect family members (such as in-laws) will be considered as a politically exposed person
Note: Each country may have different local PEP regulations that you need to comply with when doing business in that region.
Accuity has produced a handy infographic that summarises information on who should be classified as a Politically Exposed Person.
What is a PEP? Infographic
Test Yourself: Are these people PEPs?
- The mayor of Paris
- A former member of the board of directors for a state-owned enterprise
- A famous actress
- Head of the Olympic Committee
- The son-in-law of the mayor of Paris
- A town councillor
- The justice of the peace in a Magistrates Court
- The manager of a national football team
- The business partner of someone who has a sister on the Olympic Committee
View the PEP infographic for the answers and learn what constitutes a PEP.
How to easily identify these PEPs
It’s easy to see how the list of potential PEPs is huge and continually in flux as people move into new roles, family members change, regulations and recommendations from the FATF get updated on a local level, and the international landscape continually alters.
Request a demonstration to see how our KYC Due Diligence Data File can be seemlessly built into your PEP screening process to help streamline your due diligence and lower your exposure to risk and fines.
Request a demonstration to see how our KYC Due Diligence Data File can be seemlessly built into your PEP screening process to help streamline your due diligence and lower your exposure to risk and fines.
Authority and power vested in politically exposed persons inorder for them to exercise functions of the state, are the source of corruptionrisks and that of laundering dirty money. Politically exposed persons must be subjectto special rules of financial operations control, which would enable timelydiscovery of legalization of funds acquired as the result of corruption acts,namely acceptance of bribes, embezzlement, unlawful acquisition of property ornon-earmarked use of funds, abuse of office etc.
Administrator of the Register, Anti-corruption Action CentreNGO, when identifying the politically exposed persons, is guided by the normsof national and international law, recommendations of internationalorganizations and Service of Financial Monitoring of Ukraine, such as:
- 12th Recommendation of FATF – International group to combat money laundering (Financial Action Task Force on Money Laundering) (hereinafter – the Recommendation)
In case of collisions/contradictions of the norms of nationaland international law, Anti-corruption Action Centre NGO is to be guidedforemost by the FATF Recommendations, which, notwithstanding their advisorynature for the actors of primary financial monitoring in Ukraine, thecountry committed to implementingwhen signing Ukraine-European Union Association Agreement (Articles 20 and 127of the Agreement).
The Law of Ukraine “On Prevention andCounteraction to Legalization (Laundering) of the Proceeds of Crime, TerrorismFinancing and Financing of Proliferation of Weapons of Mass Destruction” (hereinafter –the Law), specifies the following categories of politically exposedpersons:
1. national politically exposed persons;
2. foreign politically exposed persons;
3. politically exposed persons, having political functions ininternational organizations;
4. associated persons of politically exposed persons;
5. close persons of politically exposed persons.
National politically exposed persons, according to the Law, aredefined as individuals exercising or havingexercised in the last three years specific public functions in Ukraine,namely:
● President of Ukraine;
● Prime Minister of Ukraine;
● Members of the Cabinet ofMinisters of Ukraine;
● First deputies anddeputies to the ministers;
● Heads of other centralbodies of executive power, their first deputies and deputies;
● Members of Parliament ofUkraine;
● Head and members of theBoard of the National Bank of Ukraine;
![Politically Exposed Person List Politically Exposed Person List](/uploads/1/2/4/6/124606855/354417460.png)
● Members of the Council ofthe National Bank of Ukraine;
● Heads and judges of theConstitutional Court of Ukraine, Supreme Court of Ukraine and high specializedcourts;
● Members of the HighCouncil of Justice;
● Members of the HighQualification Commission of Judges of Ukraine;
● Members of theQualifications and Disciplinary Commission of Public Prosecutors;
● Prosecutor General anddeputies;
● Chief of the SecurityService of Ukraine and deputies;
● Director of the NationalAnti-corruption Bureau of Ukraine and deputies;
● Head of the Anti-MonopolyCommittee of Ukraine and deputies;
● Head and members of theAccounting Chamber;
● Members of the NationalCouncil of Television and Radio Broadcasting of Ukraine;
● Ambassadors Extraordinaryand Plenipotentiary;
● Chief of the General Staff– Commander-in-Chief of the Ukrainian Armed Forces;
● Chiefs of the UkrainianGround Forces, Ukrainian Air Force and Ukrainian Navy;
● Civil servants holding“A”- category posts;
● Heads of oblast localcentral agencies of executive power;
● Heads of Prosecutor’sOffice bodies;
● Heads of oblast localbodies of the Security Service of Ukraine;
● Heads and judges of thecourts of appeal;
● Heads of administrative,managerial and supervisory bodies of state companies, economic societies,having over 50 percent of state share in their authorized capital;
● Heads of governing bodiesof political parties and members of their central statute bodies.
Positions of civil servants belonging to “A” category (highest rank of civil service):
●State Secretary of the Cabinet of Ministers of Ukraine withdeputies and state secretaries of ministries;
●Heads of central bodies of executive power non-members of theCabinet of Ministers of Ukraine and their deputies;
●Heads of staff of the Constitutional Court of Ukraine, SupremeCourt, Higher specialized courts and their deputies, heads of secretariats ofthe High Council of Justice, High Qualifications Commission of Judges and theirdeputies, Head of the State Court Administration of Ukraine and their deputies;
●Heads of state service in other state bodies havingjurisdiction over the whole territory of Ukraine.
Heads of subsidiary companies:
The pep.org.ua list also includes heads of administrative,managerial or supervisory bodies of subsidiaries of state enterprises, companies having over 50% share of the state in their authorized capital. Thesepersons are identified as politically exposed persons based on the legalopinion of the Supreme Court of Ukraine on case No. 21-452а14, when the board ofjustices of the Administrative Court Chamber reached the conclusion that sincethe founder of the subsidiary is a public joint stock company, whose 100percent of shares are owned by the state, then subsidiary company is aninherently public company as well, as it operates based on the state property,transferred possession by the founder for economic management.
Heads of large municipal enterprises:
According to the Law, heads of municipal enterprises are notpolitically exposed persons, unlike heads of the state companies.
Recommendation 12 of FATF (paragraph 38)[1] defines Publicfunction (politically exposed person) as a physical entity vested with prominentpublic function. What constitutes a prominent public function domesticallydepends on the particular organizational framework of government orinternational organization concerned, and the powers and responsibilitiesassociated with particular public functions and other factors that areconsidered as part of the risk assessment. For example, prominent publicfunctions may exist at the federal, state or provincial, and/or municipallevels.
Recommendation 12 of FATF (Paragraph 41[2]) states that in orderto determine PEPs there is another approach, which would be to describegenerally the types of responsibilities that are sufficiently prominent (e.g.,final approval over government procurement processes, responsibility forbudgetary spending).
In view of the above, in the Register we publish informationabout a number of persons who are not politicaly exposed persons according tothe Law, but perform prominent publicfunctions:
● Seniormanagers of largemunicipal enterprises
● Heads of branches of largestate enterprises and companies with a state share of more than 50 percent
● Majors of big cities
● Chairman of the Board ofthe Social Insurance Fund of Ukraine
● Managing Director of the DepositGuarantee Fund for Individuals and his Deputies
● Commissioner of theVerkhovna Rada of Ukraine for Human Rights
● Secretary of the NationalSecurity and Defense Council
● Members of the CentralElection Commission
From the economic significance standpoint, access to managingbudget funds, certain municipal enterprises are comparable to the state ones bytheir importance. Therefore, heads of some administrative, managerial orsupervisory bodies are included in the pep.org.ua database as nationalpolitically exposed persons.
For instance, KP “ZhytloInvestBud-Ukb” is a municipalenterprise under jurisdiction of Department of Development and Housingprovision of Kyiv City Council executive body (Kyiv City State Administration).The function of the enterprise is organization of planning, construction,reconstruction, capital repairs, commissioning and alienation of residentialand non-residential buildings, raising funds from physical and legal entitiesfor housing and real estate development. In 2017, KP “ZhytloInvestBud-Ukb”concluded 2,058,832,041.52 UAH public procurement agreements, including thosefor building schools and kindergartens, reconstruction of social infrastructureobjects, social housing development. Funds for construction of these objectsare allocated from the local budget.
Municipal corporation “KyivAvtoDor” was created under thedecision of Kyiv City Council of March 3, 2002. The corporation is underjurisdiction of executive body of Kyiv City Council (Kyiv City StateAdministration). The corporation provides technical supervision, maintenanceand repairs of roads as well as road and transport facilities on them, streetlighting network. In 2017, the corporation concluded 2,221,505,825.07 UAH ofpublic procurement agreements. Those were agreements for capital repairs ofstreets and avenues of Kyiv city, pathways between houses, territories aroundhouses, development of projects estimating documentation and the expertexamination of construction projects. Along with KyivAvtoDor the same functionsare delegated to subsidiaries PJSC “DAK “Roads of Ukraine”, theheads of which are also politically exposed persons.
Municipal company “Kyiv Underground” is an enterprisemanaging the capital city underground system, which provides 50% of the totalcity passenger transportation in Kyiv. In 2017, Kyiv Underground concluded 373,510,321.88 UAH worth public procurement agreements.
Therefore, municipally owned companies, similar to theaforementioned ones, can be characterized as:
1) having important public functions on the city level in Kyiv,which is the capital of Ukraine;
2) are financed from Kyiv city budget, which is partiallyfinanced from the state budget;
3) manage budget costs which significantly surpass those managedby most state companies.
Thus, considering criterion of “prominent public functions” andcorruption risks associated with these posts, we consider heads of largemunicipal companies of Kyiv City to be national politically exposed persons andinclude their data to pep.org.ua.
Heads of branches of large state enterprises and companies witha state share of more than 50 percent:
The Register includes Heads of branches of large state enterprises and companieswith a state share of more than 50 percent in case the aggregate value ofassets of the enterprise according to the latest financial statements exceeds 2billion UAH[1], and a branch has the right to make procurementson its own.
Mayors of big cities:
Wolfsberg Group Recommendations includecharacteristics of certain prominent public functions, which can be useful asindicators of importance or prominence and can be employed to determine whethera person can be identified as a politically exposed person. As an example of function which can be ground for givingthe status of a politicallyexposedperson, the status of city mayor, governor, leader of federal region.[3].
Therefore, even though city mayors are not politically exposedpersons under the Law, in pep.org.ua data base mayors of cities with a statusof oblast centres are identified as politically exposed persons,considering “prominent public functions” of these persons, highcorruption risks associated with their post and their influence on makingdecisions considering local budget funds allocation.
Chairman of the Board of the Social Insurance Fund of Ukraine
Politically Exposed Persons List Providers
In compliance with the Article 4 of the Law of Ukraine 'OnCompulsory State Social Insurance', the Social Insurance Fund of Ukraineis the body that manages and controls the compulsory state social insuranceagainst accidents in case of temporary incapacity for work and medicalinsurance, carries out the accumulation of insurance premiums, controls the usageof these funds. The Social Insurance Fund is a non-profit self-governingorganization. The management is carried out on a parity basis by the state,representatives of insured persons, and employers.
At the same time, the sources of Fund formation are mostlyinsurance premiums of insurers and insured persons. The amount of insurancepremiums and the obligation to pay them are established by the Law of Ukraine'On the Collection and Registration of a Single Contribution to ObligatoryState Social Insurance' in a mandatory manner. Persons who pay insurance premiumscan not refuse to pay. Incorrect accounting of obligations to pay insurancepremiums, non-payment of these premiums or not full payment is punishably byfinancial sanctions and administrative fines.
The right to impose and enforce financial sanctions andadministrative fines for the violations listed above belongs to the SocialInsurance Fund.
The budget of the Fund is approved by the Cabinet of Ministersof Ukraine.
One of the main tasks of the Fund is the implementation of statepolicy in the areas of social insurance against industrial accidents andoccupational diseases that caused disability for work, due to temporaryincapacity for work, and medical insurance.
Therefore, we believe that functions of the Fund are essentiallyfunctions of a state body, and the Chairman of the Fund has impact andsufficient authority to be classified as a politically exposed person on anequal basis with the heads of central executive authorities.
Managing Director of the Deposit Guarantee Fund for Individualsand his Deputies
Politically Exposed Persons Check
The Deposit Guarantee Fund operates under the Law of Ukraine'On the System of Guaranteeing Individual’s Deposits'.
In compliance with the Article 19 of the Law of Ukraine 'Onthe System of Guaranteeing Individuals' Deposits'. Sources of fundformation are fees from participants of the Fund, funds from the State Budgetof Ukraine (including domestic governmnet loan bonds), and other sources. Everyyear (2016, 2017, 2018) the Law of Ukraine 'On the State Budget ofUkraine' provides the capacity of issuing domestic governmnet loan bondsto finance the Fund.
The functions of the Fund are implementation of the procedurefor the withdrawal of insolvent banks from the market, including implementationof temporary administration and liquidation of banks, organization of the sale ofall or a part of the assets and liabilities of insolvent bank, sale ofinsolvent bank or the establishment and sale of a transitional bank.
It is worth noting that some banks, management, liquidation,sale of assets of which are implemented by the Fund, have significant debts tothe National Bank of Ukraine. Some of these banks were brought to a state, whereit was necessary to implement the temporary administration of the Fund, by unfairactions of bank officials.
It depends on the representatives of the Deposit Guarantee Fund whetherfacts of abuse by the officials of the banks transferred to the Fund's managementwill be recorded; whether action will be taken on dissolution, recognition ofnull and void contracts, with the help of which funds were illegally withdrawnfrom banks; how effectively will the sale of property of banks under thecontrol of the Fund be organized. It depends how much of funds of the depositsof individuals and other creditors (including the National Bank of Ukraine)will be repaid, how much of the State Budget of Ukraine will be spent on it.
As ofFebruary 2018, the Deposit Guarantee Fund provides the liquidation of 92 banks,two of them has temporary administration (according to the website of theDeposit Guarantee Fund). Participants of the deposit guarantee system are 83banks. In such a situation, we believe that the management of the DepositGuarantee Fund has a significant impact on the economic situation in thecountry, management of budget funds and shall be recognized as a national politicallyexposed person.
Commissionerof the Verkhovna Rada of Ukraine for Human Rights:
Theexistence of the position of Commissioner of the Verkhovna Rada of Ukraine onHuman Rights is stipulated by the Constitution of Ukraine, and the legal statusof this person is regulated by the Law of Ukraine 'On the Commissioner ofthe Verkhovna Rada of Ukraine on Human Rights'. The Commissioner'soperations are ensured by the secretariat, head of which is a politically exposed person.Since the Commissioner of the Verkhovna Rada of Ukraine fore Human Rights hasmore powers than his/her Head of Secretariat, it is reasonable to include theCommissioner for Human Rights to the category of public figures.
Secretaryof the National Security and Defense Council:
Thefunctions of the National Security and Defense Council of Ukraine include:
1)making suggestions to the President of Ukraine on the implementation of theprinciples of domestic and foreign policy in the field of national security anddefense;
2) coordinationand control over the activity of executive authorities in the field of nationalsecurity and defense in times of peace;
3)coordination and control over the activities of executive authorities in thefield of national security and defense in case of a martial law or state of emergency, and in case of crises threatening the national security of Ukraine.
In compliancewith Articles 2and 5 of the Law of Ukraine 'On Sanctions', thedecision of the National Security and Defense Council is the legal basis for applicationof sanctions by Ukraine. The decision on the application, cancellation, andamendment of sanctions is made by the National Security and Defense Council ofUkraine, and shall be enacted by a Decree of the President of Ukraine.
Forexample, the Resolution of the National Security and Defense Council datedApril 28, 2017 imposed sanctions on 1228 individuals and 468 legal entities.
TheSecretary of the National Security and Defense Council of Ukraine is appointed tothe position and dismissed from it by the President of Ukraine and is directlysubordinated to him. He/she provides the organization of work andimplementation of decisions of the National Security and Defense Council ofUkraine.
In viewof the above, we consider that the powers of the Secretary of the NationalSecurity and Defense Council of Ukraine are very important to consider him anational politically exposed person, despite the lack of a direct indication inthe Law.
Members of the Central Election Commission
The Central Election Commission is a permanently actingcollegiate state body that has the authority to organize the preparation andconduct the elections of the President of Ukraine, Members of Parliament ofUkraine and local councilors .
The Commission heads the system of election commissions andreferendum commissions that are formed to organize the preparation and conduct ofthe elections of the President of Ukraine, people's deputies of Ukraine, anall-Ukrainian referendum.
The Law of Ukraine 'On the Central ElectionCommission' stipulates that the CEC registers the candidates for the positionof President of Ukraine, their trustees; appeals to the High AdministrativeCourt of Ukraine regarding the cancellation of the registration of a candidatefor the position of President of Ukraine; registers candidates for the pisitionof Member of Parliament of Ukraine; decides to cancel the registration ofcandidates for the pisition of Member of Parliament of Ukraine; organizes thepreparation and conducts an all-Ukrainian referendum; registers initiativegroups from an all-Ukrainian referendum; establishes the results of electionsand referendum and officially promulgates them.
Liquidators and heads liquidation commissions:
The pep.org.ua list also includes in the category of nationalpolitically exposed persons liquidators and headsliquidation commissions ofthe state companies and economic societies with the state share of over 50percent in the liquidation period. During the liquidation period, liquidator orliquidation commission de facto manages the company. For instance, part 4 ofArticle 105 of the Civil Code of Ukraine states that commission on legal entityliquidation (reorganization commission, liquidation commission) or liquidationsince the moment of appointment has authority to manage the legal entity. Headof commission, its members or liquidator of a legal entity represent the latterin relations with third parties and act in court on the behalf of theliquidated legal entity.
Family members and close persons
The national law uses the term “close persons” inreference to the closest relatives of politically exposed persons, under theLaw of Ukraine “On Corruption Prevention”. However, Recommendation 12 of FATFand Fourth Anti-Money Laundering Directive use the term “Familymembers”.
Close persons – the term “close persons” (of a politicallyexposed person) is used in the meaning provided by the law of Ukraine “CorruptionPrevention ”, i.e., people who live together, share common household and haverights and obligations in common with the entity mentioned in partone of the Article 3 of the Law (except persons, whose common rights andobligations with the entity have no familial nature), including persons thatlive together without being married, as well as – independent of specifiedconditions – husband, wife, father, mother, step-father, stepmother, son,daughter, stepson, stepdaughter, brother, sister, grandfather, grandmother,great-grandfather, great-grandmother, grandson, granddaughter, great-grandson,great-granddaughter, son-in-law, daughter-in-law, father-in-law, mother-in-law,adopter or adoptee, guardian or care-taker, person under wardship or care ofthe said individual.
The Law has no mention of the term “family members” of anational politically exposed person and its differentiation from the term“close person” of a national politically exposed person.
In paragraph 48 of Recommendation 12 of FATF it is stated, thatthe number of persons belonging to the family depend on culturalcharacteristics of a certain country, it may include narrow circle of persons(spouses, their parents, children, siblings), as well as the broader one,including cousins or even clans[4].
Paragraph 10 of Article 3 of the Fourth Anti-Money LaunderingDirective states that the term family members of politically exposed personsincludes the following: the spouse, (or a person considered to be equivalent toa spouse), parents, children and spouses of children (or other personsconsidered to be equivalent to a spouse).
Therefore, Anti-corruption Action Centre NGO, when working oncontent for the Register (pep.org.ua), is guided by the norms of internationallaw and uses the term “Family member”.
The “Family members” category includes:
● spouse (or any individual residing withpolitically exposed person and having common family without registeringmarriage);
● father/ mother (stepfather/ stepmother);
● son/ daughter (stepson/ stepdaughter);
● son/daughter-in-law of a politically exposedperson;
● siblings of a politically exposed person;
● father/mother-in-law.
It is worth mentioning that the term “Family members” inRecommendation 12 of FATF and Fourth Anti-Money Laundering Directive is morenarrow than the term “Close persons”, used in the Law. We include the personsnot belonging to family members, but being close persons, under the Law ofUkraine, belong to connected persons (grandparents, grandchildren, cousinsetc). Therefore, information on these individuals can be found on pep.org.ua.
Associates – individuals having business or personal connections withfamily members of national or foreign politically exposed persons and thosehaving political functions in international organizations, as well as legalentities, that have politically exposed persons, their family members orindividuals having business or personal connections as finalbeneficiary owners (controllers).
Financial Monitoring Service in Methodical guidelinesrecommends tointerpret “business connections” as connections having documental proof(namely, by title deeds) between politically exposed persons and/or theirfamily members and individuals or legal entities in the context of:
● right of property – jointownership, use or managing of assets belonging to family members of politicallyexposed persons (e.g., an individual owns a share of joint partial or commonproperty, such as facilities, equipment, transport, other movable property orreal estate etc. in a company owned by a family member of a politically exposedperson or their close relative. Also, this property right is confirmed with anappropriate document);
● control, i.e., ability tosignificantly influence economic activity of a company, exerted through,namely, property right realization,use of all the assets or a significant partof them, the right to significantly influence composition, voting results andmaking decision making process of managing bodies of a company, as well aslegal actions enabling determination of economic activity conditions, givingbinding orders or functioning as a managing body of a company;
Politically Exposed Persons List Us
● holding executive positions inmanaging bodies of a company;
● representation: (а)representation based on an administrative act; (b) representation based on law,(representation by law); (c) representation based on agreement (voluntary oragreed representation); (d) commercial representation;
● business partnership.
Just one out of the above criteria is not necessarily an indicator of close businessconnections. This criterion is evaluated by an analyst individually along withall other apparent indicators/criteria of connection.
What constitutes “personal connections” isrecommended to interpret connections that evolve between politically exposedpersons and/or their family members, and individuals, for instance, such as theright to use assets of politically exposed persons’ family membersnotwithstanding formal ownership (e.g., it is known that an individual resideswith a family member of a politically exposed person or their accommodation ispaid for by family members of a politically exposed person etc.)
Recommendation 12 of FATF (paragraph 49)[5] gives thefollowing examples of personal connections: (known) (sexual) partners outsidethe family unit (e.g. girlfriends, boyfriends, mistresses); prominent membersof the same political party, civil organisation, labour or employee union. Inthe case of personal relationships, the social, economic and cultural contextmay also play a role in determining how close those relationships generallyare.
In the relationship category the following types of connectionsare reflected:
- partners outside the family unit (girlfriend,boyfriend, mistress)
- former husband / wife;
- godfather/godmother
- godfather/godmother of the child
- personal assistant
- close friends
- cousins
- nephew/niece
- uncle/aunt
- grandparents/grandchildren
- great-grandparents/ great-grandchildren
Concerning the term of being considereda politically exposed person:
When including a person in this category, we use the list ofpositions identified in paragraph 25 of part 25 of Article 1 of the Law. Thesame paragraph also states that any individual is considered to be a PEP ifthey had held one of the specified positions in the last three years.
According to Recommendation 12 of FATF (paragraphs 44, 45), whendetermining whether an individual is a PEP or has connections to a politicallyexposed person, it is better to consider not the timeframe, but the risk levelassociated with the current status of a person. Namely, it is necessary toconsider whether a person has kept their influence level and connections,whether their current activity is connected with the previous public functions.Risk level of family members and persons connected with a PEP is correlatedwith the risk level retained by a politically exposed person[6]. That is why we do not delete information on individuals fromthe database after three years have passed, but their profile is in a different colour in order to show thepossible lower risk associated with such person for financial monitoring purposes.
In cases webelieve that the risk associated withthe status ofa person has preserved - the profile is not displayed in a different color, but we indicate the fact of expiring of three-year term.The user canfind the dismissal date from thelast position specified in the profile.
We believe thatthe risk associated with the status ofa national politically exposed person has preserved, if:
- a person is indicated in the sanction lists of Ukraine,the USA, the EU or a Member State of the European Union;
- a person is the subjectof an international orall-Ukrainian manhunt, has the status of a suspect or accused in a criminal proceedings in Ukraine or abroad;
- a person who owns a large business that he/she has created or developed duringhis/her tenure in publicoffice. Business uses state resources, permissions and licenses, participationin public procurement, takes a monopoly position;
- a person that hold the position of Minister of MykolaAzarov government from 2013 till February 2014.
We believe thatthe risk associated with the status ofa national politically exposed person has preserved, if:
- a person is indicated in the sanction lists of Ukraine,the USA, the EU or a Member State of the European Union;
- a person is the subjectof an international orall-Ukrainian manhunt, has the status of a suspect or accused in a criminal proceedings in Ukraine or abroad;
- a person who owns a large business that he/she has created or developed duringhis/her tenure in publicoffice. Business uses state resources, permissions and licenses, participationin public procurement, takes a monopoly position;
- a person that hold the position of Minister of MykolaAzarov government from 2013 till February 2014.
Informationabout deceased politically exposed persons (if we have information about theirdeaths) is also displayed in the Register:
Politically Exposed Person List India
![Politically Exposed Person List Politically Exposed Person List](/uploads/1/2/4/6/124606855/690116469.jpg)
Politically Exposed Person List
[1] Although the Glossary definitionincludes some examples of what is meant by prominent public function, theprecise level of seniority which triggers the PEPs requirements is notspecified, and the list of examples provided is not exhaustive. This is becausewhat constitutes a prominent public function domestically depends on the size(e.g. number of inhabitants, size of the budget), particular organisationalframework of government or international organisation concerned, and the powersand responsibilities associated with particular public functions and otherfactors that are considered as part of the risk assessment under Recommendation1. For example, prominent public functions may exist at the federal, state orprovincial, and/or municipal levels. Jurisdictions may use the risk assessmentin Recommendation 1 to identify the specific levels and types of PEPs whichpose a higher risk.
Politically Exposed Persons List Download
[2] Another approach would be todescribe generally the types of responsibilities that are sufficientlyprominent (e.g., final approval over government procurement processes,responsibility for budgetary spending over a certain amount, decision makingpowers over government subsidies and grants).
[3] In addition, the following may alsobe considered to fall within the definition but, equally, may be excluded incountries or organisations where the risk of corruption or abuse is consideredto be relatively low e.g. where there is low record of corruption or where theindividual does not have significant influence or the ability to control ordivert funds.
...
• City mayors and governors or leaders of federal regions
[4] For family members, this includessuch relevant factors as the influence that particular types of family membersgenerally have, and how broad the circle of close family members and dependentstends to be. For example, in some cultures, the number of family members whoare considered to be close or who have influence may be quite small (e.g.,parents, siblings, spouses/partners, and children). In other cultures, grandparentsand grandchildren might also be included, while in others, the circle of familymembers may be broader, and extend to cousins or even clans.
[5] For close associates, examplesinclude the following types of relationships: (known) (sexual) partners outsidethe family unit (e.g. girlfriends, boyfriends, mistresses); prominent membersof the same political party, civil organisation, labour or employee union asthe PEP; business partners or associates, especially those that share(beneficial) ownership of legal entities with the PEP, or who are otherwiseconnected (e.g., through joint membership of a company board). In the case ofpersonal relationships, the social, economic and cultural context may also playa role in determining how close those relationships generally are.
[6] 44. Recommendation 12 also definesa PEP as being someone who has been (but may no longer be) entrusted with aprominent public function. The language of Recommendation 12 is consistent witha possible open ended approach (i.e., “once a PEP – could always remain aPEP”). The handling of a client who is no longer entrusted with a prominentpublic function should be based on an assessment of risk and not on prescribedtime limits.
45. The risk based approach requires that financial institutionsand DNFBPs assess the ML/TF risk of a PEP who is no longer entrusted with aprominent public function, and take effective action to mitigate this risk.Possible risk factors are: the level of (informal) influence that theindividual could still exercise; the seniority of the position that theindividual held as a PEP; or whether the individual’s previous andcurrent function are linked in any way (e.g., formally by appointment of thePEPs successor, or informally by the fact that the PEP continues to deal withthe same substantive matters).