A PEP is an individual who holds (has held) a prominent public position or role in a government body or international organization, either in Aruba or abroad. Immediate family members and/or close associates of these individuals are also considered PEPs. Because PEPs hold positions of power and influence, they can be a target for corruption and bribery attempts, and ultimately for money laundering or terrorism financing activities.
This is why it’s important to use AML/CTF measures to identify, mitigate and manage any such potential risks. However, being a PEP doesn’t automatically mean someone is involved in criminal activities.
As part of your AML/CTF program, you must outline how PEPs are identified and what steps are taken when dealing with PEPs, in particular the risk assessment and monitoring.
