Politically exposed person (PEP)
A politically exposed person (PEP) is someone entrusted with a prominent public function — senior government officials, judges, military leaders, executives of state-owned enterprises — plus their immediate family and close associates. PEP status is not an accusation; it flags elevated corruption risk that AML programs address with enhanced due diligence.
By Krisan Nichani, Chief Compliance OfficerLast updated July 2026
PEP screening runs at onboarding and on an ongoing basis, against databases that track public roles worldwide. Like sanctions screening, name matching is fuzzy — transliterations, aliases, common names — so matches need human adjudication. A confirmed PEP triggers enhanced due diligence and closer monitoring, not automatic rejection.
On Infinite, PEP screening is part of the same onboarding and monitoring that covers sanctions and watchlists: counterparties are screened before funds move, flagged matches get human review, and the adjudication lands in the documented case file.
Frequently asked questions
Is it illegal to do business with a PEP?
No. PEPs can be served — programs must identify them and apply enhanced due diligence. Sanctions lists are the prohibition; PEP status is a risk flag that raises the review bar. Enhanced due diligence (EDD)
How long does someone remain a politically exposed person?
There is no universal rule. Many jurisdictions treat status as lapsing 12 to 18 months after the person leaves office, others apply longer periods or lifetime treatment, and family and associate status lasts as long as the relationship. Programs decide on a risk basis rather than a fixed clock.
How are PEPs identified?
By screening customers and beneficial owners against PEP databases at onboarding and on an ongoing basis. Matching is fuzzy by nature, so potential matches get human adjudication before any decision. Sanctions screening
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