Business relationships with them require enhanced measures such as senior management approval, establishing the source of wealth and funds, and closer monitoring. Being a PEP is an indicator of higher risk, not a suspicion of wrongdoing in itself.
Source: FATF Tavsiyeleri, MASAK düzenlemeleri
Related terms
Know your customer (KYC)The processes by which obliged parties identify and verify their customers, determine the beneficial owner and understand the purpose of the business relationship.Ultimate beneficial ownerThe natural person who ultimately owns or controls a legal entity or arrangement, or on whose behalf a transaction is carried out.Sanctions screeningChecking customers, suppliers, payments and transaction parties against national and international sanctions and asset-freeze lists.Anti-bribery and corruptionThe set of policies, controls and training designed to prevent the offering or acceptance of undue advantages to or from public officials or private sector employees.Application controlsAutomated or IT-dependent manual controls embedded in a software application that ensure transactions are processed completely, accurately and with authorisation.Business continuity planA plan to keep critical activities running at an acceptable level and return to normal within set timeframes after a disruption, disaster or cyber attack.
Last updated: November 8, 2026 · This definition is for general information only.