EXPLANATORY NOTES ON PEP DEFINITIONS
Slight variations of PEP definitions are observed in both international and domestic enactments.
A. International
(1) FATF (Glossary, 2003)
“Politically Exposed Persons” (PEPs) are individuals who are or have been entrusted with prominent public functions in 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. Business relationships with family members or close associates of PEPs involve reputational risks similar to those with PEPs themselves.
(2) FATF (Guidance, 2013)
Foreign PEPs
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.
Domestic PEPs
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.
International organization PEPs
International organisation PEPs: persons who are or have been entrusted with a prominent function by an international organisation, refers to members of senior management or individuals who have been entrusted with equivalent functions, i.e. directors, deputy directors and members of the board or equivalent functions.
Family members of PEPs
Family members are individuals who are related to a PEP either directly (consanguinity) or through marriage or similar (civil) forms of partnership.
Close associates of PEPs
Close associates are individuals who are closely connected to a PEP, either socially or professionally.
(3) EU (3rd Directive)
“Natural persons who are or have been entrusted with prominent political functions and immediate family members or persons known to be close associates of such persons.” (Article 3 (8)
(4) UNAC (2003)
Article 52
……..individuals who are, or have been, entrusted with prominent public functions and their family members and close associates.
Article 2
(a) “Public official” shall mean: (i) any person holding a legislative, executive, administrative or judicial office of a State Party, whether appointed or elected, whether permanent or temporary, whether paid or unpaid, irrespective of that person's seniority; (ii) any other person who performs a public function, including for a public agency or public enterprise, or provides a public service, as defined in the domestic law of the State Party and as applied in the pertinent area of law of that State Party; (iii) any other person defined as a “public official” in the domestic law of a State Party.
B. Domestic (Thailand)
(1) Ministerial Regulation on Customer Due Diligence, 2013 Article 3 :
“politically exposed person (PEP)” means an individual who is or was entrusted with a prominent public function in Thailand or by a foreign country, such as a Head of State or Government, a minister or a senior official in the government, the judicial branch, an organ under the constitution, the prosecutorial or the military, a senior executive of a state enterprise or state-owned corporation, or an important political party official as well as a family member or close associate of a PEP and a person who is or was entrusted with a prominent function in an international organization such as managing director, deputy managing director and member of the board of directors or person holding an equivalent position. This shall be determined in a Notification issued by the Secretary-General.
(2) AMLO Notification ( 20 March 2017)
Article 3 Factors that classify a natural person as a PEP shall be one of the following;
(1) Being a high ranking official in the Parliament, the Cabinet or Judicial.
(2) Being a high ranking official and having a significant role, duty in controlling or management in a central government, a provincial government, a government enterprise or other government organization.
(3) Being a high ranking official and having commanding authority in military or police force.
(4) Being a high ranking official or a committee member in a constitutional organization.
Thai PEPs shall include natural persons under paragraph one who vacate their positions not exceeding one year or having influence over such position despite having vacated the position more than one year.
Article 4 Thai PEPs under Article 3 shall include;
(1) Family member i.e. father, mother, spouse and children.
(2) Close associates such as
a) A natural person who is entrusted with duties to possess or manage asset or other benefit
b) A natural person who has close relationship due to the establishment or maintenance of business relationship
Article 5 Provisions under Article 2, 3 and 4 shall apply to foreign PEPs and international organization PEPs mutatis mutandis.
Article 6 For the benefit of implementation of money laundering and terrorist financing risk management, professions under Section 16 Paragraph One (2), (3), (4), (5), (6), (7), (8) and (10) may consider the customer, who does not fall into Article 3 and Article 4, as having high risk, at the same level as PEP, from laundering money that may derive from offense of malfeasance in office or corruption which are predicate offenses, if having acted or there is a reasonable ground to believe that such customer is involved with offense of malfeasance in office or corruption.
(3) Organic Act on Counter Corruption B.E. 2561 (2018) as amended
Section 4 :
"State official" means a government official or a local officer holding a permanent position or salary, a person performing work in a State enterprise or a State agency, a local administrator, deputy of local administrator, assistant of local administrator, and a member of a local council of Local Administrative Organization, an official under the law on local administrative procedures, or any other official stipulated by related laws and shall include a member of a committee, a subcommittee, an employee of a government agency, a State agency , or a State enterprise, and a person or a group of persons being authorized by law to exercises power or entrusted to exercise State administrative power established in the official service, a State enterprise or other State undertaking but shall exclude a person holding political position, Justice of the Constitutional Court, a person holding position in independent organization, and National Anti-Corruption Commission;
"person holding a political position" means:
(1) Prime Minister;
(2) Minister;
(3) member of the House of Representatives;
(4) senator;
(5) political official other than (1) and (2) under the law on political officials;
(6) political parliamentary official under the law on parliamentary officials.
"person holding a high-ranking position" means the person holding the position as head of a Government agency at the level of a Ministry, Sub-Ministry, or Department, or state agency having a status of juristic person and not being a person holding political position in respect of ordinary Government officials, and the Permanent Secretary for Ministry of Defense, Commander-in-chief, Commander of a National Force in respect of military officials, and the Commander of the Royal Thai Police, and shall include Provincial governor, Permanent-Secretary of the Bangkok Metropolitan Administration, member of the Board and the top executives of a State enterprise, or head of an independent agency under the Constitution, but shall exclude the auditor-general of the State Audit Office, member of the Board and the top executives of other state agencies, or the person holding other position prescribed by laws; or person holding position equivalent to those stipulated by National Anti-Corruption Commission.
Slight variations of PEP definitions are observed in both international and domestic enactments.
A. International
(1) FATF (Glossary, 2003)
“Politically Exposed Persons” (PEPs) are individuals who are or have been entrusted with prominent public functions in 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. Business relationships with family members or close associates of PEPs involve reputational risks similar to those with PEPs themselves.
(2) FATF (Guidance, 2013)
Foreign PEPs
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.
Domestic PEPs
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.
International organization PEPs
International organisation PEPs: persons who are or have been entrusted with a prominent function by an international organisation, refers to members of senior management or individuals who have been entrusted with equivalent functions, i.e. directors, deputy directors and members of the board or equivalent functions.
Family members of PEPs
Family members are individuals who are related to a PEP either directly (consanguinity) or through marriage or similar (civil) forms of partnership.
Close associates of PEPs
Close associates are individuals who are closely connected to a PEP, either socially or professionally.
(3) EU (3rd Directive)
“Natural persons who are or have been entrusted with prominent political functions and immediate family members or persons known to be close associates of such persons.” (Article 3 (8)
(4) UNAC (2003)
Article 52
……..individuals who are, or have been, entrusted with prominent public functions and their family members and close associates.
Article 2
(a) “Public official” shall mean: (i) any person holding a legislative, executive, administrative or judicial office of a State Party, whether appointed or elected, whether permanent or temporary, whether paid or unpaid, irrespective of that person's seniority; (ii) any other person who performs a public function, including for a public agency or public enterprise, or provides a public service, as defined in the domestic law of the State Party and as applied in the pertinent area of law of that State Party; (iii) any other person defined as a “public official” in the domestic law of a State Party.
B. Domestic (Thailand)
(1) Ministerial Regulation on Customer Due Diligence, 2013 Article 3 :
“politically exposed person (PEP)” means an individual who is or was entrusted with a prominent public function in Thailand or by a foreign country, such as a Head of State or Government, a minister or a senior official in the government, the judicial branch, an organ under the constitution, the prosecutorial or the military, a senior executive of a state enterprise or state-owned corporation, or an important political party official as well as a family member or close associate of a PEP and a person who is or was entrusted with a prominent function in an international organization such as managing director, deputy managing director and member of the board of directors or person holding an equivalent position. This shall be determined in a Notification issued by the Secretary-General.
(2) AMLO Notification ( 20 March 2017)
Article 3 Factors that classify a natural person as a PEP shall be one of the following;
(1) Being a high ranking official in the Parliament, the Cabinet or Judicial.
(2) Being a high ranking official and having a significant role, duty in controlling or management in a central government, a provincial government, a government enterprise or other government organization.
(3) Being a high ranking official and having commanding authority in military or police force.
(4) Being a high ranking official or a committee member in a constitutional organization.
Thai PEPs shall include natural persons under paragraph one who vacate their positions not exceeding one year or having influence over such position despite having vacated the position more than one year.
Article 4 Thai PEPs under Article 3 shall include;
(1) Family member i.e. father, mother, spouse and children.
(2) Close associates such as
a) A natural person who is entrusted with duties to possess or manage asset or other benefit
b) A natural person who has close relationship due to the establishment or maintenance of business relationship
Article 5 Provisions under Article 2, 3 and 4 shall apply to foreign PEPs and international organization PEPs mutatis mutandis.
Article 6 For the benefit of implementation of money laundering and terrorist financing risk management, professions under Section 16 Paragraph One (2), (3), (4), (5), (6), (7), (8) and (10) may consider the customer, who does not fall into Article 3 and Article 4, as having high risk, at the same level as PEP, from laundering money that may derive from offense of malfeasance in office or corruption which are predicate offenses, if having acted or there is a reasonable ground to believe that such customer is involved with offense of malfeasance in office or corruption.
(3) Organic Act on Counter Corruption B.E. 2561 (2018) as amended
Section 4 :
"State official" means a government official or a local officer holding a permanent position or salary, a person performing work in a State enterprise or a State agency, a local administrator, deputy of local administrator, assistant of local administrator, and a member of a local council of Local Administrative Organization, an official under the law on local administrative procedures, or any other official stipulated by related laws and shall include a member of a committee, a subcommittee, an employee of a government agency, a State agency , or a State enterprise, and a person or a group of persons being authorized by law to exercises power or entrusted to exercise State administrative power established in the official service, a State enterprise or other State undertaking but shall exclude a person holding political position, Justice of the Constitutional Court, a person holding position in independent organization, and National Anti-Corruption Commission;
"person holding a political position" means:
(1) Prime Minister;
(2) Minister;
(3) member of the House of Representatives;
(4) senator;
(5) political official other than (1) and (2) under the law on political officials;
(6) political parliamentary official under the law on parliamentary officials.
"person holding a high-ranking position" means the person holding the position as head of a Government agency at the level of a Ministry, Sub-Ministry, or Department, or state agency having a status of juristic person and not being a person holding political position in respect of ordinary Government officials, and the Permanent Secretary for Ministry of Defense, Commander-in-chief, Commander of a National Force in respect of military officials, and the Commander of the Royal Thai Police, and shall include Provincial governor, Permanent-Secretary of the Bangkok Metropolitan Administration, member of the Board and the top executives of a State enterprise, or head of an independent agency under the Constitution, but shall exclude the auditor-general of the State Audit Office, member of the Board and the top executives of other state agencies, or the person holding other position prescribed by laws; or person holding position equivalent to those stipulated by National Anti-Corruption Commission.
“WHY THE NEED TO DEFINE PEPs?”
1. As defined in the Ministerial Regulation on CDD of 11 July 2013, PEP or “politically exposed person” means an individual who is or was entrusted with a prominent public function in Thailand or by a foreign country, such as a Head of State or Government, a minister or a senior official in the government, the judicial branch, an organ under the constitution, the prosecutorial or the military, a senior executive of a state enterprise or state-owned corporation, or an important political party official as well as a family member or close associate of a PEP and a person who is or was entrusted with a prominent function in an international organization such as managing director, deputy managing director and member of the board of directors or individual holding an equivalent position.
FATF Guidance on PEPs of June 2013 adds, It is recognized that many PEPs are in positions that potentially can be abused for the purpose of committing money laundering (ML) offences and related predicate offences, including corruption and bribery, as well as conducting activity related to terrorist financing (TF).
2. Corruption is an internationally recognized crime, rooted in almost every country and every international organization, causing huge losses of wealth and hampering development and prosperity of many countries.
3. Rating of corruption country-wise indicates a particular country’s level of political stability and government credibility. It also is an important factor in defining the scope of international cooperation.
4. In establishing business relationships with financial institutions or transactions with non-financial businesses and professions, a customer’s status as a PEP poses a potential risk of money laundering associated with corruption or malfeasance in office.
5. Thailand has a legal obligation to comply with international standards on anti-money laundering (AML) and countering terrorist financing (CFT) as prescribed in FATF Recommendations as well as UNCAC (2003) both of which emphasize that PEPs are high-risk persons whose financial transactions accordingly need to be closely watched and monitored.
1. As defined in the Ministerial Regulation on CDD of 11 July 2013, PEP or “politically exposed person” means an individual who is or was entrusted with a prominent public function in Thailand or by a foreign country, such as a Head of State or Government, a minister or a senior official in the government, the judicial branch, an organ under the constitution, the prosecutorial or the military, a senior executive of a state enterprise or state-owned corporation, or an important political party official as well as a family member or close associate of a PEP and a person who is or was entrusted with a prominent function in an international organization such as managing director, deputy managing director and member of the board of directors or individual holding an equivalent position.
FATF Guidance on PEPs of June 2013 adds, It is recognized that many PEPs are in positions that potentially can be abused for the purpose of committing money laundering (ML) offences and related predicate offences, including corruption and bribery, as well as conducting activity related to terrorist financing (TF).
2. Corruption is an internationally recognized crime, rooted in almost every country and every international organization, causing huge losses of wealth and hampering development and prosperity of many countries.
3. Rating of corruption country-wise indicates a particular country’s level of political stability and government credibility. It also is an important factor in defining the scope of international cooperation.
4. In establishing business relationships with financial institutions or transactions with non-financial businesses and professions, a customer’s status as a PEP poses a potential risk of money laundering associated with corruption or malfeasance in office.
5. Thailand has a legal obligation to comply with international standards on anti-money laundering (AML) and countering terrorist financing (CFT) as prescribed in FATF Recommendations as well as UNCAC (2003) both of which emphasize that PEPs are high-risk persons whose financial transactions accordingly need to be closely watched and monitored.
Remarks
1. AML-ThaiPEPs is a list of National & Local Thai Political Exposed Persons as identified by Anti-Money Laundering Act, B.E.2542 (1999) and its amendment including Customer Due Diligence Ministerial Regulation B.E.2563 (2020) and Anti-Money Laundering Office Notification on Money Laundering/Terrorists & Proliferation Financing Risk Management, B.E.2564 (2021). Information of AML-ThaiPEPs list is to be attached.
2. AML-ThaiPEPs List is subject to Personal Data Protection Act, B.E.2562 (2019) (PDPA) and its instrumentalities. Any collection, use or disclosure of AML-PEPs must be strictly in compliance with the PDPA. More information, please see Privacy Policy to be attached to Data Processing Agreement.
3. AML-ThaiPEPs List template is an intellectual property which is subject to Copy Rights & Patents Law which are strictly implemented. Such information herein is sufficient for legal proceedings.
1. AML-ThaiPEPs is a list of National & Local Thai Political Exposed Persons as identified by Anti-Money Laundering Act, B.E.2542 (1999) and its amendment including Customer Due Diligence Ministerial Regulation B.E.2563 (2020) and Anti-Money Laundering Office Notification on Money Laundering/Terrorists & Proliferation Financing Risk Management, B.E.2564 (2021). Information of AML-ThaiPEPs list is to be attached.
2. AML-ThaiPEPs List is subject to Personal Data Protection Act, B.E.2562 (2019) (PDPA) and its instrumentalities. Any collection, use or disclosure of AML-PEPs must be strictly in compliance with the PDPA. More information, please see Privacy Policy to be attached to Data Processing Agreement.
3. AML-ThaiPEPs List template is an intellectual property which is subject to Copy Rights & Patents Law which are strictly implemented. Such information herein is sufficient for legal proceedings.
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