The short answer
A politically exposed person (PEP) is someone who holds, or has held, a prominent public function — such as a head of state, senior politician, senior judge, senior military officer or executive of a state-owned enterprise — along with their close family members and close associates. PEP status is not wrongdoing; it signals higher exposure to bribery and corruption risk.
At a glance
- Term
- Politically exposed person (PEP)
- Also known as
- PEP · PEP screening
- Category
- Screening & risk
- Where it matters
- Company and founder due diligence
Politically exposed person in practice
The concept comes from anti-money-laundering standards set by the Financial Action Task Force (FATF). Regulated firms apply enhanced due diligence to PEPs; others use PEP status as context.
Being a PEP is not an accusation. Many PEPs are entirely legitimate counterparties — the point is to know, and to look more carefully at sources of funds and influence.
Why politically exposed person matters
- A PEP among a company’s officers or owners can change the risk profile of a deal.
- Public-procurement and licensing decisions involving PEPs deserve extra scrutiny.
Politically exposed person in MarketPrior
MarketPrior runs a PEP screen built on Wikidata on the company’s officers and owners where they are known. Like sanctions hits, PEP hits are tiered confirmed, probable or possible, and name-only matches are shown for review rather than scored.