Foreign PEPs

Foreign PEPs, short for Politically Exposed Persons, refer to individuals who hold prominent positions in foreign governments or international organizations.

27/05/2023

Definition: Foreign PEPs, short for Politically Exposed Persons, refer to individuals who hold prominent positions in foreign governments or international organizations. These individuals are deemed to have a higher risk of involvement in corrupt practices or illicit financial activities due to their influential roles. Foreign PEPs are subject to enhanced scrutiny as part of anti-money laundering (AML) and counter-terrorism financing (CTF) measures to prevent illicit funds from entering the financial system.

Practical Examples:

Heads of state, such as presidents, prime ministers, and monarchs, from foreign countries are considered foreign PEPs.
Ministers, ambassadors, and high-ranking officials in foreign governments fall into the category of foreign PEPs.
Leaders of international organizations, such as the United Nations or World Bank, are also classified as foreign PEPs.

Statistics and Relevant Numbers:

According to a report by the Financial Action Task Force (FATF), foreign PEPs pose a significant risk for money laundering, corruption, and other financial crimes due to their potential access to public funds and influence.
The International Monetary Fund (IMF) estimates that around $1.6 trillion to $2.2 trillion of illicit funds are laundered globally each year, with a considerable portion attributed to activities involving foreign PEPs.

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