Who Is a Politically Exposed Person (PEP)?
A politically exposed person (PEP) is an individual who holds, or has held, a prominent public function. Because that position creates a higher risk of corruption and money laundering, obliged institutions must apply enhanced due diligence to PEPs, their family members and their close associates. The definition is set out in the Polish Act of 1 March 2018 on counteracting money laundering and terrorist financing, in Article 2(2)(11).
The list of positions that confer PEP status is not a matter of opinion. It is defined by law and, since 2021, clarified by a dedicated ministerial regulation. This article explains the categories, who counts as family and a close associate, and how the status is verified in practice.
The legal definition
Under the Polish AML Act, a PEP is a natural person who occupies a prominent political position or performs a significant public function. The Act lists the categories explicitly, including:
- heads of state and heads of government, ministers, deputy ministers and secretaries of state
- members of parliament or similar legislative bodies
- members of the governing bodies of political parties
- members of supreme courts, constitutional tribunals and other high-level judicial bodies whose decisions are not subject to appeal
- members of courts of auditors and the boards of central banks
- ambassadors and chargés d’affaires
- senior officers of the armed forces
- members of the administrative, management or supervisory bodies of state-owned enterprises
- directors of international organisations
- general directors of central state bodies, voivodeship offices and heads of field offices of special government administration
Because the wording has historically left room for interpretation, the Minister of Finance, Funds and Regional Policy issued a regulation in 2021 that specifies which positions are treated as PEP positions. It entered into force on 31 October 2021 and removed much of the earlier ambiguity.
Family members and close associates
PEP obligations do not stop at the person. The Act also covers:
- Family members: a spouse or a person in a close relationship, children and their spouses, and parents
- Close associates: persons who are known to be beneficiaries of the same legal persons or trusts as the PEP, or who maintain other close business relationships with the PEP
Why PEP status matters
For obliged institutions, PEP status triggers enhanced due diligence. In practice that means establishing the source of funds and wealth, obtaining senior management approval for the business relationship, and ongoing monitoring. Screening a customer’s name against a PEP list is the usual first step, and it is why accurate PEP data matters so much.
Checking whether a given person is a PEP is not always obvious, especially for local government and state-company roles. The dedicated articles in this section answer the most common questions one position at a time. A reliable PEP screening API, such as Hyperflow, can run these checks automatically against current data.
Frequently asked questions
Can someone be a PEP without being on a list?
Yes. PEP status follows from the function, not from appearing on any particular register. A person who holds a qualifying position is a PEP even if no commercial database lists them yet.
How long does PEP status last?
PEP status does not end the moment a person leaves office. Institutions apply a risk-based approach and typically continue enhanced monitoring for at least 12 months after the function ends, and often longer for higher-risk roles.
Is a PEP automatically a criminal?
No. PEP status is a risk indicator, not an accusation. It simply requires enhanced scrutiny.
UK perspective
In the United Kingdom, PEPs are defined in the Money Laundering Regulations 2017 and supervised by the FCA. The categories are similar to the Polish list, and enhanced due diligence applies to family members and close associates as well.