Duty to vet politically exposed persons (PEP)

The Anti-Money Laundering and Countering the Financing of Terrorism Act imposes an obligation on certain entities to verify PEPs.

The Act mainly applies to customers (usually one of the largest group) and beneficial owners. In addition, the verification requirement also extends to family members of persons with whom the entity enters into a business relationship. According to the law, the entrepreneur should check whether the persons establishing with him business relations hold a politically exposed position (PEP). If the answer is in the affirmative, it is necessary to take appropriate action as specified in the implemented procedure.

It has not been possible to determine who should be considered a politically exposed person until now. The reason was the lack of a detailed list that would list all PEPs. This state of affairs has changed. July 27, 2021. The Minister of Finance, Funds, and Regional Policy issued a regulation on the list of national public positions and functions that are politically exposed positions. This list contains a catalog of the said positions, thus allowing verification.

The list contained in the regulation should be taken into account when identifying PEPs. Perhaps this obligation will be relevant for companies in the process of establishing business relationships and hiring personnel.

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