In terms of FICA a politically exposed person (PEP) is an individual who holds or has held a prominent public function.
Within this position, the person has a level of influence and control over public funds, benefits, and decision-making. The abuse of such a position in office could result in corruption and bribery that may serve as a predicate offence to money laundering.
Although there is a heightened risk of money laundering associated with politically exposed persons, it does not mean that all politically exposed persons are linked to and engage in illicit activities.
In the South African context, the FIC Act distinguishes between two types of politically exposed persons:
- A DPIP is an individual who holds, including in an acting position for a period exceeding six months, or has held at any time in the preceding 12 months in South Africa, a prominent public function as listed in Schedule 3A of the FIC Act.
- An FPPO is an individual who holds, or has held at any time in the preceding 12 months, in any foreign country a prominent public function as listed in Schedule 3B of the FIC Act.