FATF's PEP framework addresses the increased corruption-related risk that can arise when a customer or beneficial owner holds a prominent public function. It distinguishes foreign PEPs, domestic PEPs and persons entrusted with prominent functions by international organisations, with associated treatment of family members and close associates.

The measures can include identifying PEP status, senior-management approval, establishing source of wealth and source of funds, and enhanced ongoing monitoring. The precise application depends on the PEP category and risk conditions. PEP status is not proof of criminal conduct and is not equivalent to a sanctions designation.

The operational task is to understand the person's role, influence, connections and financial activity in context. A name-list hit is only the start of that assessment. Risk should be reviewed as circumstances change, including after a person leaves office, under the applicable national implementation of the FATF standard.