POLITICALLY EXPOSED PERSON (PEP) DECLARATION

Like all estate agents (and many other industries), we are required to ascertain from all buyers and sellers whether they or any member of their immediate family is classed as a Politically Exposed Person (PEP).

WHAT IS A POLITICALLY EXPOSED PERSON?

Politically exposed persons are persons that are entrusted with prominent public functions, held in the UK or abroad.

Typically this includes:

• Heads of State, Heads of Government, Ministers and deputy or assistant ministers
• Members of Parliament or similar bodies
• Members of governing bodies of political parties
• Members of supreme and constitutional courts and other high level judicial bodies
• Members of courts of auditors or boards of central banks
• Ambassadors, and high ranking officers in the armed forces
• Members of the administrative, management or supervisory bodies of state owned enterprises
• Directors, deputy directors and members of the board, or equivalent of an international organisation.

The definition includes family members such as spouse, partners, children (of the person and their spouse or partner) and parents and known close associates. Close associates are persons who have:

• joint legal ownership, with a politically exposed person, of a legal entity or arrangement 
• any other close business relationship with a politically exposed person
• sole beneficial ownership of a legal entity or arrangement set up for the benefit of a politically exposed person.

WHY WE NEED THIS INFORMATION

It is now a legal requirement for all estate agents to undertake several checks with buyers and sellers. These checks include satisfying rules set out by The Property Ombudsman, Anti Money Laundering regulations set out by HMRC and (as of January 2020) the EU Fifth Money Laundering Directive. 

More information can be found at the following websites:

https://www.lawsociety.org.uk/en/topics/anti-money-laundering/peps

https://www.gov.uk/government/publications/money-laundering-regulations-2007-supervision-of-estate-agency-businesses/estate-agency-guidance-for-money-laundering-supervision