Politically Exposed Person

A politically exposed person is someone entrusted with a prominent public function, and in most frameworks the definition reaches their close family members and known associates as well. The status is not an accusation. It exists because such a position carries a higher risk of bribery and misappropriation, and the response required of a regulated firm is proportionate scrutiny rather than refusal: senior approval to open or continue the relationship, stronger evidence of where funds came from, and closer ongoing monitoring. Who counts, for how long after leaving office, and whether domestic office-holders are treated the same as foreign ones are matters of national law and differ substantially. In practice a customer meets the concept as an extra question at sign-up and, where it applies, a slower review with more documents — which is the mechanism working as designed rather than a sign that something is wrong.