If you have been involved in politics, been an executive in a major company, or been a diplomat or ambassador, or if this describes a close family member, you may be facing barriers, as you have been designated a Politically Exposed Person (PEP). Thankfully, there are solutions.
A PEP is a type of identifier in a digital profile. A digital profile is the information about a person that is available in open sources online and is increasingly becoming a prominent tool for identity verification. It also includes compliance assessments, data available in government databases, and information from all kinds of international organizations.
To put it simply, a digital profile is a collection of data about a person that reflects their personal details, economic activity, professional background, and even social interactions. It’s a modern reality you must be aware of. Banks pay particular attention to these profiles to evaluate client risk, especially during cross-border transactions.
A digital profile includes specific identifiers that indicate a person’s status, and one such identifier is PEP status (Politically Exposed Person), which refers to a politically significant individual. We explore this identifier further in this article.
What You Need to Know About PEP Status
Individuals who have substantial political influence, both domestically and internationally, can be labelled a PEP. This group may include:
- Senior government officials;
- Top executives of major companies;
- Political figures;
- Military officials;
- Members of the boards of international organizations;
- Diplomats and ambassadors.
What is crucial to understand is that the same designation can be applied to close relatives of PEPs, such as parents, spouses, children, and siblings. Why? They receive this designation because they are believed to share similar influence and may use those connections to impact the country’s economy and society, or for harmful purposes.
The biggest problem is that many people are unaware they have PEP status until they apply to register a company, open a bank account, or obtain a visa abroad.
Who Assigns PEP Status?
The term “PEP” has existed for over twenty years now, as it was introduced by the intergovernmental Financial Action Task Force (FATF) in 2003. FATF develops recommendations for identifying PEPs and maintaining relevant registries, but does not create official lists itself.
Instead, PEP lists are compiled by:
- Financial institutions and banks, through their scoring programs;
- International compliance systems (such as Dow Jones Risk & Compliance, World-Check (Refinitiv), LexisNexis, and others);
- Government and regulatory authorities under national anti-money laundering programs.
Most financial institutions rely on global compliance systems to verify client PEP status.
Each system has its own strengths. For example:
- World-Check (Refinitiv) covers 240 countries and territories, with tools for in-depth risk analysis, including media sources.
- Dow Jones Risk & Compliance focuses on EU and OFAC sanctions lists and data on financial crimes.
- LexisNexis analyzes links between individuals and companies.
Do note that these systems are constantly updated. As a result, you may have been added or removed without realizing it.
Financial institutions are required to check for PEP status when opening accounts and conducting transactions. Non-compliance may lead to heavy fines and regulatory audits.
What Difficulties Does PEP Status Bring?
People with PEP status are considered high-risk clients because their influence and connections could potentially be used for money laundering, financing terrorism, and other illegal activities. Therefore, financial institutions must conduct enhanced checks for individuals on PEP lists.
PEPs will also face enhanced checks when applying for visas, registering companies, or enrolling in foreign educational institutions.
Common challenges faced by people with PEP status include:
- Stricter control over financial transactions;
- Longer processing times for opening bank accounts and executing payments;
- Difficulties obtaining visas and purchasing real estate abroad;
- Higher likelihood of being included on sanctions lists;
- Increased scrutiny of close relatives.
The most noticeable consequence for PEPs is stricter KYC procedures (“Know Your Client”) used by foreign banks. The reason is that banks fear secondary sanctions, and financial institutions are often reluctant to work with people who may be subject to international restrictions.
The effect is that they take more time to verify account applications and transactions, often requesting additional documentation to prove the source of funds and the legality of business partners. This can lead to serious issues, delays, and rejections.
Does PEP Status Remain After Leaving Office?
People on PEP lists usually hold leadership positions in government or major corporations. However, leaving the position does not automatically remove them from the lists. It is assumed that the individual may still maintain influential connections. That said, the risk is reduced, and the status may change to Inactive/Former PEP.
This approach is used by compliance systems such as LexisNexis and World-Check. Before updating a person’s status, these systems analyze:
- Time since the person left office;
- Whether they still have political connections;
- Their income level and transparency;
- If they have any ties to high-risk industries.
Even with an Inactive/Former PEP status, the person is still considered somewhat risky, but compliance procedures may be relaxed.
Individuals can accelerate the transition to “inactive” status if they manage their digital footprint and reputation in public and government records. For example, it’s important to avoid media publications that suggest political influence or links to risky sectors.
A neutral public image can be supported by reputable media coverage, well-maintained social media profiles, and accurate information in official sources.
Can PEP Status Be Completely Removed?
In LexisNexis and World-Check systems, PEP status can eventually be removed, but not immediately after resignation.
According to the FATF, there is no set timeframe for this. Organizations are simply advised to wait a “reasonable period.” In most countries, this period ranges from 5 to 10 years, depending on the individual’s level of influence and the compliance system’s protocols.
However, having PEP status is not a “black mark” that makes it impossible to open a bank account or obtain a visa. With the right approach, it’s entirely possible to simplify interactions with financial institutions and eventually receive the Inactive/Former status.
If you have PEP status or suspect you might, a licensed partner of ours at Q Wealth, specializing in complex commercial cases and business rights protection, can help. Their experience includes removing PEP status for clients who left high-ranking positions, as well as correcting errors caused by family ties to politically exposed persons.
To resolve the issue, their legal team will:
- Analyze your digital profile with their PR team and work to promote positive content in search results.
- Provide media engagement strategies.
- Collect evidence that your PEP status is no longer relevant.
- Submit a request to the compliance system provider to update your information.
Contact us now for a professional reputation protection strategy based on experience, international standards, and numerous successful outcomes.
Their team doesn’t just advise—they deliver results. They can help with the removal from PEP lists after resignation, deleting inaccurate or mistakenly assigned tags, and correcting publicly available data.
They analyze your digital footprint, work with compliance data providers, and support you at every stage until reputational risks are fully eliminated.
30 May 2025 