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Money laundering vulnerabilities

Some of the money laundering vulnerabilities associated with PEPs are set out below:

  • PEPs provide a veneer of respectability which can deflect suspicion about their transactions. The privileged positions of trust and responsibility PEPs hold may be seen as enhancing the legitimacy of their transactions and financial activity, and correspondingly reduces the risk of such activity raising suspicion.   
  • PEPs have a position of influence and are uniquely placed to be involved in corruption. Because of their position, corrupt PEPs may circumvent or attempt to circumvent AML/CTF regulation by influencing, controlling or evading AML/CTF programs. Corrupt PEPs may also influence or attempt to influence individuals and institutions that guard against criminal activity.
Last modified: 08/07/2015 11:15