A PEP is an individual who holds a prominent public position or role in a government body or international organisation, either in Australia or overseas. Immediate family members and/or close associates of these individuals are also considered PEPs.
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (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.
- International organisation PEP – someone who holds a prominent public position or role in an international organisation, such as the United Nations (UN), the World Trade Organisation (WTO) or the North Atlantic Treaty Organisation (NATO).
Any individual who fits the criteria outlined above is considered to be a 'Politically Exposed Person'.
How do I provide my PEP status to Selfwealth?
Selfwealth will ask you for your PEP status when you first open a portfolio with us. If you are not a 'Politically Exposed Person', you can simply select 'No' when prompted for your PEP status.
If you believe that you are a 'Politically Exposed Person' and select 'Yes' when prompted for your PEP status, you may be required to complete additional verification steps before your account is approved.
We may also ask if your PEP status has changed on some occasions, such as when you apply for an international trading account. If you indicate that your PEP status has changed, additional verification steps may also be required.
Selfwealth will contact you if any additional verification steps are required.
Why does Selfwealth require me to disclose my PEP status?
Due to the sensitive nature of many roles performed by Politically Exposed Persons, our AML/CTF act obligations require us to record the PEP status of clients during the application process. Any information you provide relating to your PEP status is considered sensitive information and is handled in accordance with the Privacy Act (1988) and the Australian Privacy Principles.