Regulatory Alerts2024-07-05
Added · Updated
Guidelines on Politically Exposed Persons (PEPs) (Effective)
This document outlines the enhanced due diligence obligations for financial institutions regarding Politically Exposed Persons (PEPs) under French and European regulations. It defines PEPs as individuals holding or having held important public functions in France, abroad, or in international organizations within the last year, including specific family members and close associates. Financial entities must request detailed information on professional, family, and financial situations to verify the origin of wealth and funds, ensuring data is precise enough to assess composition rather than using broad ranges. The text also notes upcoming changes under Regulation (EU) 2024/1624, effective July 10, 2027, which will expand PEP definitions to include regional and local officials and extend measures to transactions conducted for the benefit of PEPs or their associates.