Politically Exposed Person (PEP)
As part of our KYC process, we need to know if you are, or have been, a person in a politically exposed position (PEP) or if you are a family member or employee of such a person.
Who is a PEP?
A PEP is a person in a politically vulnerable position who has or has had important public functions in a state or in an international organization. Examples of people in a politically vulnerable position:
The head of state
Members of Parliament
The Prime Minister and other ministers in the government office
Judge in the Supreme Court and the Supreme Administrative Court
The Auditor General
The Riksbank's Executive Board
Senior officers (general, lieutenant general, major general, admiral, vice admiral and rear admiral)
CEO or board member in state-owned companies
Person in the management of an international organization (board members, general secretary, etc.)
Member of political party board
Family members and employees are also covered
We must also know which investors are family members and known associates of a person in a politically vulnerable position.
Spouse, registered partner, cohabitant
Children and their spouses
Registered partners or cohabitants
Person who together with a person in a politically exposed position owns or otherwise has controlling influence over a company.
Person who otherwise has or has had a close relationship with a person in a politically vulnerable position. It does not have to be a business relationship.
Person who alone owns or exercises influence over a company that has actually been formed for the benefit of a person in a politically vulnerable position.
If the customer is a company, the bank must check who directly or indirectly, alone or together with close relatives, exercises ultimate control over the company and whether this person has a politically exposed position, or has a family member or known employee in such a position.
For additional information, please read here.