According to the updated Securities and Exchange Commission of Pakistan (Anti-Money Laundering and Countering Financing of Terrorism) Regulations, 2018 issued by the SECP, politically exposed persons included foreign PEPs, individuals who are or have been entrusted with prominent public functions by a foreign country, for example heads of state or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials.
The domestic PEPs, individuals who are or have been entrusted domestically with prominent public functions, for example heads of state or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials.
The "PEPs" included persons who are or have been entrusted with a prominent function by an international organisation, means members of senior management and members of the board or equivalent functions. Provided that middle ranking or more junior individuals in the referred categories are not included in the definition of PEPs.
In relations to foreign and domestic PEPs, regulated person shall implement appropriate internal risk management systems, policies, procedures and controls to determine if any customer or a beneficial owner is a PEP. In case of foreign PEPs, regulated person shall perform EDD in accordance with additional requirements of these regulations.
In case of domestic PEPs, where business relationship poses higher risk, regulated person shall carry out EDD in accordance with regulation in addition to other requirements of these regulations. The requirements are also applicable on family members and close associates of foreign and domestic PEPs, the SECP added.