“Politically-Exposed Persons” (PEPs) are individuals who, by virtue of their POSITION in public LIFE, MAY be vulnerable to corruption. The New Zealand legislation currently limits this concept to foreign PEPs, and does not include domestic (New Zealand-based) PEPs. REPORTING entities are required to give specific consideration to the risks involved with PEPs and so should:

• have procedures in place to determine whether a customer, or a beneficial owner of a customer, is a PEP or a close associate of a PEP;
• obtain senior management approval for establishing or maintaining business relationships with PEPs;
• take REASONABLE measures to establish the source of wealth and source of funds of PEPs; and
• conduct enhanced, ongoing monitoring of the business relationship.

“Politically-Exposed Persons” (PEPs) are individuals who, by virtue of their position in public life, may be vulnerable to corruption. The New Zealand legislation currently limits this concept to foreign PEPs, and does not include domestic (New Zealand-based) PEPs. Reporting entities are required to give specific consideration to the risks involved with PEPs and so should: