PEP (Politically Exposed Person)

An individual entrusted with a prominent public function (a head of state, senior politician, senior official, senior judge, military officer, or senior state-enterprise executive), plus their family members and close associates. FATF Recommendation 12 and EU Directive 2015/849 require enhanced due diligence for PEPs because their position raises bribery and corruption risk. The status does not imply wrongdoing; it triggers extra scrutiny. In shipping it bears on screening the ownership and control behind charterers and vessel-owning companies in higher-risk jurisdictions.