PEP Definition

Please note that according to The Prevention and Suppression of Money Laundering and Terrorist Financing Law, the definition of a politically exposed person, means a natural person who is or who has been entrusted with prominent public functions in the Republic or in another country, an immediate close relative of such person as well as a person known to be a close associate of such person:

Provided that, for the purpose of the present definition, ‘prominent public function’ means any of the following public functions:

a. heads of State, heads of government, ministers and deputy or assistant ministers;

b. members of parliament or of similar legislative bodies;

c. members of the governing bodies of political parties;

d. members of supreme courts, of constitutional courts or of other high-level judicial bodies, the decisions of which are not subject to further appeal, except in exceptional circumstances;

e. members of courts of auditors or of the boards of central banks;

f. ambassadors, chargés d'affaires and high-ranking officers in the armed forces;

g. members of the administrative, management or supervisory bodies of State-owned enterprises;

h. directors, deputy directors and members of the board or equivalent function of an international organisation;

i. mayor

Provided further that no public function referred to in points (a.) to (i.) shall be understood as covering middle-ranking or more junior officials;

Provided furthermore that «close relatives of a politically exposed person» includes the following:

a. the spouse, or a person considered to be equivalent to a spouse, of a politically exposed person;

b. the children and their spouses, or persons considered to be equivalent to a spouse, of a politically exposed person;

c. the parents of a politically exposed person;

Provided even furthermore that ‘persons known to be close associates of a politically exposed person’ means natural person:

 a. who is known to have joint beneficial ownership of legal entities or legal arrangements, or any other close business relations, with a politically exposed person;

b. who has sole beneficial ownership of a legal entity or legal arrangement which is known to have been set up for the de facto benefit of a politically exposed person.