Why is it necessary for Mintos to determine if I am a politically exposed person (PEP)?
The law mandates that we determine if a customer, their representative, or beneficial owner is a politically exposed person (PEP), or if they are a family member or close associate of such an individual; therefore, we might ask you additional questions about your affiliation to this type of person.
Who is a politically exposed person (PEP)?
A person who in the Republic of Latvia, another Member State (a European Union Member State or a country of the European Economic Area), or a third country (a country other than a Member State) holds or has held a significant public office, including:
- a higher official of the public authority;
- a head of the State administrative unit (local government);
- the Prime Minister;
- the Minister (the Deputy Minister or the Deputy of the Deputy Minister, if there is such an office in the relevant country);
- the State Secretary or another official of high level in the government or State administrative unit (local government);
- a Member of Parliament or a member of a similar legislation entity, a member of the management entity (executive board) of the political party;
- a judge of the Constitutional Court;
- the Supreme Court or a court of another level (a member of the court authority);
- a member of the council or executive board of the supreme audit institution;
- a member of the council or executive board of the central bank;
- an ambassador;
- a chargé d’affaires;
- a high-ranking officer of the armed forces;
- a member of the supervisory or executive board of a State capital company;
- a head (a director, a deputy director) a member of the executive of an international organization, or a person who holds an equal position in such an organization.
Who is a family member of a PEP?
A person who is the following for a PEP:
- a spouse or a person equivalent to a spouse. A person shall be considered a person equivalent to a spouse only if he or she is given such a status by the legislation of the relevant country;
- a child or a child of a spouse or a person equivalent to a spouse of a politically exposed person, his, or her spouse or a person equivalent to a spouse;
- a parent, grandparent, or grandchildren;
- a brother or a sister.
Who is a person closely associated with a PEP?
A natural person regarding whom it is known that he or she has a business or other close relations with a PEP or he or she is a stockholder or shareholder in the same commercial company with any PEP, and also a natural person who is the only owner of a legal arrangement regarding whom it is known that it has been established in the favor of the PEP.
How long is a person considered to be PEP, a family member of a politically exposed person, or a person closely associated with a politically exposed person?
A person ceases to be PEP, a family member of a PEP, or a closed associate of such an individual if:
- the PEP does not hold a prominent public office anymore in conformity with the definition of a PEP described above for at least 12 months, and the business relationship does not cause increased money laundering risk anymore;
- the PEP has died.