Definition
A Politically Exposed Person (PEP) is an individual who holds or has held a prominent public function, as well as their close associates and family members, who present an elevated risk of corruption and money laundering.
Context
PEPs are a key focus of anti-money laundering (AML) frameworks and require enhanced scrutiny under know your customer (KYC) and enhanced due diligence (EDD) processes. They are particularly relevant in cross-border relationships and high-risk jurisdictions.
Meaning
PEPs are subject to enhanced monitoring and due diligence due to their increased exposure to corruption and financial crime risks.
Example
A government minister identified as the beneficial owner of a corporate client.
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Politically Exposed Person (PEP)", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/politically-exposed-person-pep/, accessed April 18, 2026.