Updated
GL-P-03
Glossary · Due Diligence and compliance
PEP - a politically exposed person: not a refusal, but deeper checks
A politically exposed person: officials, lawmakers, judges, military and their close relatives. PEP status does not mean a refusal, but the check will be deeper, longer and more expensive. Some banks simply do not take PEPs.
01 / In 30 seconds
The short answer
- What it is
- A politically exposed person: an official, MP, judge, head of a state company — or a close associate
- Where it applies
- Opening accounts, citizenship and residence by investment, large transactions
- What changes
- Enhanced due diligence (EDD): deeper, longer, more documents
- Does it mean refusal
- No: the status itself is not a refusal; it is a matter of preparation and choice of bank
- Can you prepare
- Yes: assess the status in advance and assemble a source-of-wealth file
02 / In plain words
What PEP means
A PEP (politically exposed person) is a person with political prominence. Put simply: if you are an official, an MP, a judge, a high-ranking military officer, the head of a state company — or a close relative of such a person — you fall into the PEP category.
PEP status does not in itself mean refusal. It means that enhanced due diligence (EDD) will be applied to you: you will be examined more deeply, asked for more documents on the origin of your money, and approval will take longer and, as a rule, cost more. The logic is that people with access to power carry a higher risk of corrupt income, so the financial system looks at them more closely. The status extends to relatives and close associates as well (the RCA category).
An important point: in many countries the status persists for several years after leaving office. Some banks simply do not take PEPs because of the reputational risk, while others work with them calmly — it is a matter of preparation and of choosing the right bank.
A case from practice
A former deputy minister from a CIS country wants a second passport and an account in Europe. As a PEP they undergo an enhanced check: besides the standard file they are asked to explain how their wealth grew during their years in public service. With income declarations and evidence of legitimate sources assembled in advance, the application is approved; without them the bank would have refused without looking further.
Where PEP status comes up
- Opening a bank account abroad
- Due diligence for citizenship and residence by investment
- Large transfers and transactions
- Compliance at investment funds and brokers
- Buying property abroad
- Checking business partners
03 / What it covers
Who falls under PEP status
Positions
- Officials and ministers
- MPs and judges
- High-ranking military officers
- Heads of state companies
Relatives and associates (RCA)
- Spouse and children
- Parents
- Close business associates
What is intensified
- Source-of-funds check
- Check on the growth of wealth
- Additional documents
Duration of the status
- Applies while in office
- Persists for 1-3 years afterwards
- Choosing a bank that works with PEPs
04 / How it works
How enhanced PEP due diligence works
Determining the status
We check the applicant's and family's posts and when they left.
Source-of-wealth file
Declarations, income, assets - how the wealth grew.
Choosing the bank and programme
A bank and a programme that work with PEPs.
Approval (EDD)
We answer enhanced due diligence requests with documents.
Approval
The account is opened or the application approved with the status disclosed.
05 / Key facts
What you need to know
01Who it is
A post or a family tie
An official, MP, judge, senior military officer, head of a state company, or their close relatives.
02Family and associates
The RCA category
Spouses, children, parents and close business associates go through the same enhanced checks.
03Duration
1-3 years after leaving office
The status continues after leaving office. The exact period depends on the country and the bank's policy.
04What changes
Enhanced due diligence
Deeper, longer, more documents on source of wealth. Some banks do not take PEPs; others work with them routinely.
Common mistakes
Not recognising PEP status in yourself or relatives
Check your family's posts in recent years before applying.
Hiding the post
Declare it upfront: the bank will find it in databases such as World-Check.
Not explaining how wealth grew during public service
Gather income declarations and proof of lawful sources.
Going to a bank that does not take PEPs
Choose a bank and programme experienced with such clients.
06 / Expert advice
How to prepare in advance
First assess frankly whether you or those close to you fall under PEP status. Then assemble an enhanced file in advance: income declarations, evidence of legitimate sources and an explanation of how your wealth grew over the years. Separately, choose a bank and a programme that work calmly with PEPs. That way the enhanced check has fewer reasons to raise questions “at the door”.
What we do for you. BRIDGES GLOBAL assesses in advance whether you or those close to you fall under PEP status and prepares an enhanced file for that case: we choose a bank and programme that work with PEPs and settle the question of the source of wealth in advance, so that the enhanced check goes smoothly.
Dmitry NagyTax consultant, international taxation and compliance (ex-Big4)
07 / Questions
Frequently asked questions
No. PEP status means a deeper and longer check and requests for additional documents. It does not in itself lead to refusal — many banks and programmes work with PEPs when the preparation is sound.
Yes. Spouses, children, parents and close business associates of a prominent person are subject to the enhanced check — this is a separate category, RCA.
While the person holds office and, as a rule, for another 1-3 years after leaving. The exact period depends on the country and the bank’s internal policy.
Enhanced due diligence — an enhanced check. For a PEP it means deeper scrutiny, more documents on the origin of money and a longer approval than an ordinary check.
From the questionnaire, public databases of officials and special lists (World-Check, for example). Concealing the status is pointless and harmful: a mismatch reads as a lie.
Yes, with sound preparation. Many citizenship and residence programmes work with PEPs if the source of wealth is documented and the applicant is not under sanctions.
Related terms
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