An individual entrusted with prominent public functions — or a close family member or business associate of such an individual. PEPs trigger enhanced due-diligence requirements under AML law.
A Politically Exposed Person (PEP) is, under FATF's definition, anyone entrusted with prominent public functions — heads of state, senior politicians, senior judicial or military officials, executives of state-owned enterprises, and senior officials of international organisations. The definition extends to immediate family members and close business associates.
PEP status does not, by itself, disqualify someone from a CBI or RBI programme. It triggers enhanced due diligence (EDD): a deeper investigation of source-of-wealth, more scrutiny on political risk, and senior-management sign-off at the licensed agent. Domestic PEPs (currently serving in the applicant's own country) are typically treated as higher risk than foreign PEPs.
Most CBI/RBI programmes maintain explicit lists of currently-sanctioned or politically-exposed nationalities (e.g. Caribbean 5 currently restrict Iranian, Belarusian, Russian, and DPRK nationals).