News

Politically exposed persons – changes to the regulations

11 January 2024

An amendment to the money laundering regulations making changes to the treatment of politically exposed persons (PEPs) has come into force.

As of 10 January 2024, the status of UK politically exposed persons (PEPs) is different to overseas PEPs. The amendment means that domestic PEPs must still be subject to enhanced due diligence (EDD) but must be treated as lower risk than overseas PEPs.

The exception to this would be if they have other factors that increase the level of risk. Firms should consider amending their policies and procedures to make it clear that domestic PEPs should normally be subject to a lesser standard of EDD.  

Take a look at the amendment regulations.