Who is a PEP ?

A Politically Exposed Person (PEP) is someone who holds (or has held) a prominent public position that may expose them to higher corruption or bribery risk.

Breakdown of the PEP Classes

PEP Class 1 – Highest Risk (National Leadership)

Examples:

• Heads of State / Presidents

• Prime Ministers

• National Ministers

• Members of National Parliament

• Cabinet-level officials

Why high risk?
They control:

• National budgets

• Defence

• Policy decisions

• Large public procurement

This is the highest level of political exposure.

PEP Class 2 – Regional / State-Level Government

Examples:

• Governors

• Members of State or Regional Parliament

• Regional Ministers

Why medium-high risk?
They control:

• State budgets

• Regional development funds

• Local public contracts

Less exposure than national leaders, but still significant.

PEP Class 3 – State-Owned Enterprise (SOE) Leadership

Examples:

• Board members of government-owned companies

• CEOs of state-owned banks

• Senior management in SOEs

Why included?
SOEs often:

• Control large public funds

• Operate in sensitive sectors (energy, telecom, banking)

Risk relates to commercial corruption, not direct legislative power.

PEP Class 4 – Local Government Officials

Examples:

• Mayors

• City council members

• Municipal officials

Why lower risk?
They manage:

• Local budgets

• Municipal contracts

Exposure exists but is generally lower than national or regional positions.