What are the 3 types of PEPs?

The AML/CTF Act identifies three types of PEPs.

Domestic PEP – someone who holds a prominent public position or role in an Australian government body.
Foreign PEP – someone who holds a prominent public position or role with a government body in a country other than Australia.

What is a PEP status?

A Politically Exposed Person (PEP) is defined by the Financial Action Task Force (FATF) as an individual who is or has been entrusted with a prominent public function.

Are all PEPs high risk?

While Financial Action Task Force (FATF) guidance3 recommends that all foreign PEPs should automatically be classified as high risk, the Wolfsberg Group advocates for the application of an RBA for all PEPs, whether foreign or domestic.

Why are PEPs considered high risk?

Politically Exposed People (PEPs) are a risk when it comes to money laundering because of their social status. This status means that companies see them as a higher risk customer because of their opportunities to gain assets through unlawful means being greater than usual.

How do you check if a person is a PEP?

You can check to see if your name is on a PEP register by viewing your Multi Agency Credit Report with checkmyfile.

Are ambassadors PEPs?

PEP. Diplomatic roles such as Ambassadors and Charges D’Affaires present a higher financial crime risk and are classified as PEPs.

What is EDD in KYC?

Enhanced Due Diligence (EDD) is the KYC process of gathering data and information to verify the identity of clients, but with additional information required to mitigate the risk associated with the client. EDD also requires “reasonable assurance” when calculating a KYC risk rating.

What is a high risk pep?

The definition of politically exposed person (PEP) is an individual with a high profile political role, or who has been entrusted with a prominent public function. They present a higher risk for involvement in money laundering and/or terrorist financing because of the position they hold.

What is World Check blacklist?

World-Check is a database of Politically Exposed Persons (PEPs) and heightened risk individuals and organizations, used around the world to help to identify and manage financial, regulatory and reputational risk.

What is CDD or EDD?

The second step is Customer Due Diligence (“CDD”) which requires the bank to obtain information to verify the customer’s identity and assess the risk. If the CDD inquiry leads to a high risk determination, the bank has to conduct an Enhanced Due Diligence (“EDD”).

What is EDD vs CDD?

CDD aims at collecting data about customers’ identity and contact information as well as measuring their risk. EDD is used for high-risk customers, aka those who are more likely to implement related to money laundering and terrorism financing activities due to the nature of their business or transactions.

Is there a definitive list of PEPs in the world?

The Financial Action Task Force (FATF) also issue frequent recommendations on PEPs, adding to the challenge of a having a definitive PEPs “list”. However, most countries base their PEPs definitions on the guidance issued by the FATF, which categorize PEPs as:

Why are PEPS considered a high risk group?

PEPs represent a higher risk for financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs) because they are more likely to become involved in financial crimes like money laundering or the financing of terrorism than other clients.

Where can I find PEPS groups for new parents?

PEPS connects new parents through peer-support groups. All groups are currently meeting virtually and will continue to be virtual for the entirety of their sessions. FIND A PEPS GROUP TODAY Join us & volunteer – lead a PEPS Group, help out at community-building events and more!

Who is a Politically Exposed Person ( PEP ) in the US?

Home Knowledgebase Politically Exposed Person (PEP) A politically exposed person (PEP) is an individual who is or has been entrusted with a prominent public function.

What are the 3 types of PEPs? The AML/CTF Act identifies three types of PEPs. Domestic PEP – someone who holds a prominent public position or role in an Australian government body. Foreign PEP – someone who holds a prominent public position or role with a government body in a country other than Australia. What…