The Financial Conduct Authority has published draft Guidance on the treatment of politically exposed persons under the UK draft Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. The draft Regulations were published by HM Treasury on March 15, 2017. Politically exposed persons or "PEPs" are people who hold high public office. The Money Laundering Regulations 2007 impose an obligation on firms to undertake enhanced due diligence measures when dealing with PEPs who are located outside of the UK, as well as family members and close associates of PEPs. PEPs, as well as their families and persons known to be close associates, have been recognized by the Financial Action Task Force as requiring enhanced scrutiny by firms as PEPs may be in position to abuse their public office for private gain. The draft Regulations were produced in accordance with the incoming 4th Money Laundering Directive. This includes expanding the definition of a PEP to include those holding a politically exposed position in the UK. The FCA is seeking feedback on the draft Guidance by April 18, 2017. Publication of final guidance is required by June 26, 2017.

View the draft Guidance.

View the consultation page.

View the draft Regulations.