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What is a 'Politically Exposed Person' (PEP)?

  • Updated

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.

  1. Domestic PEP – someone who holds a prominent public position or role in an Australian government body.
  2. Foreign PEP – someone who holds a prominent public position or role with a government body in a country other than Australia.
  3. 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?

Politically Exposed Persons (PEPs)

As part of our regulatory obligations, Selfwealth is required to identify clients who may be Politically Exposed Persons (PEPs). This is a standard requirement across the financial services industry.

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. The immediate family members and close associates of these individuals are also considered PEPs.

Types of Politically Exposed Persons

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) identifies three types of PEPs:

  1. Domestic PEP, someone who holds a prominent public position or role in an Australian government body.
  2. Foreign PEP, someone who holds a prominent public position or role with a government body in a country other than Australia.
  3. 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).

Please note: Immediate family members and close associates of any of the above are also considered Politically Exposed Persons under the AML/CTF Act.

How do I provide my PEP status to Selfwealth?

When you open a portfolio with Selfwealth, you will be asked to confirm your PEP status:

  • If you select No, no further action is required.
  • If you select Yes, you may be asked to complete additional verification steps before your account is approved.

We may also ask you to confirm your PEP status at other points, for example when applying for an international trading account. If your status has changed, additional verification may be required. Selfwealth will contact you directly if this applies.

Why does Selfwealth require me to disclose my PEP status?

Financial services businesses are required by law to identify and record the PEP status of their clients. This is part of Selfwealth's obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

Your privacy is protected: Any information you provide relating to your PEP status is treated as sensitive information and handled in accordance with the Privacy Act (1988) and the Australian Privacy Principles.

Further reading

AUSTRAC, Politically Exposed Persons. Guidance from Australia's financial intelligence agency on PEP identification and verification requirements.

 

 

 

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