Bank close tabs on PEPs
Banks have been closely monitoring transactions of Politically Exposed Persons (PEP) with the Money Laundering Punishment Act requiring banks to conduct enhanced due diligence of such individuals.
From within the country the president, vice-president, prime minister, ministers, law-makers, officials of constitutional bodies, bureaucrats holding secretary-level and higher posts, judges of appellate courts and higher courts, central committee members of political parties and those holding high level position in state-owned or semi-state-owned enterprises fall under the PEP category.
International PEPs are those who hold high-level positions in the management of international institutions such as board members, directors, deputy directors and managers.
As per the Act, bank have to make efforts to find whether a PEP has property and cash in the names of other individuals and monitoring them regularly while maintaining business relations.
According to bankers, are enhanced due diligence means monitored transactions vigorously. The banks appoint dedicated staffers to monitor the database of individuals doing suspicious transactions.
