A politically exposed person (PEP) is an individual who is or has been entrusted with a prominent public function.
The following is a list of examples of public functions that would be considered as a PEP Role. This includes:
a. Heads of State, Heads of Government, Ministers, Deputy or Assistant Ministers, and Parliamentary Secretaries;
b. members of Parliament or similar legislative bodies;
c. members of the governing bodies of political parties;
d. members of the superior, supreme, and constitutional courts or of other high-level judicial bodies;
e. members of courts of auditors, or the boards of central banks;
f. ambassadors, chargé d’affaires and other high-ranking officers in the armed forces;
g. members of the administrative, management, or supervisory boards of state-owned enterprises; and
h. anyone exercising a function equivalent to those set out in paragraphs (a)-(f) above within an institution of the European Union or any other international body.
This list is by no means exhaustive, and certain public functions in one country may carry more powers than the equivalent position in other countries. By way of example, the positions and powers assumed by a mayor of a large city or head of a region in a foreign jurisdiction may not necessarily be equivalent to those assumed by a Maltese mayor, and therefore a mayor may be treated differently, depending on the jurisdiction concerned.
Family Members of PEPs. You can also be a PEP if you are a close family member of a PEP. These include:
a. the spouse, or any person considered to be the equivalent to a spouse;
b. the children and their spouses, or persons considered to be the equivalent to a spouse; and
c. the parents.
The list of “family members” is not an exhaustive list. Therefore subject persons should consider whether other family relationships in specific circumstances may be considered to be similar to those under the indicative above.
Close Business Associates of PEPs
A Close Business Associate of a PEP means:
a. a natural person is known to have:
- joint beneficial ownership of a body corporate or any other form of legal arrangement; or
- any other close business relations with that PEP.
(b) a natural person who has sole beneficial ownership of a body corporate or any other form of legal arrangement that is known to have been established for the benefit of that PEP.