Who is a politically exposed person?
In the Czech Republic, this term is defined by the Act on Certain Measures against the Legalization of Proceeds of Crime and Financing of Terrorism (the so-called Anti-Money Laundering Act).
Of the public functions in the Czech Republic, the following meet this definition:
- President of the Czech Republic,
- the Prime Minister of the Czech Republic,
- Minister, Deputy Minister, State Secretary,
- Member of Parliament and Senator,
- member of the governing body of a political party,
- mayor, mayor, governor (but no longer a member of a municipal or regional council),
- a judge of the Supreme Court, the Supreme Administrative Court or the Constitutional Court,
- a member of the Bank Board of the Czech National Bank,
- a high-ranking army or police officer,
- a member of the statutory body of a state-owned commercial corporation (or a representative of a legal person in this capacity),
- ambassador and chargé d’affaires.
A Politically Exposed Person (PEP) is also defined as a person close to the PEP and a person in the business community.
However, just because you are a PEP does not mean that we will not do business with you. We will only verify you and conduct a background check.
Duration of PEP status?
The enhanced AML measures and specific treatment of clients with PEP status apply not only while they hold a PEP function, but also after they have ceased to hold that function. This period must, in accordance with section 54(8) of the AML Act, be for as long as the specific risk arising from the PEP’s status persists, but at least for as long as 12 months after the person ceased to hold the position for which he or she is considered as PEP. The same conditions for the duration of that status apply to derivative PEPs.
Did not find the answer?
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