Politically Exposed Persons (PEPs) – In Jamaica
Author: Keron Oliver Burrell, CAMS-FCI
The global financial system is at risk of being used to clean dirty money, to finance terrorism and weapons of mass destruction (WMD). Countries have sought to implement various policies and process to mitigate the risk of being used as vehicles for money laundering (ML), terrorist financing (TF) and the proliferation of weapons of mass destruction (PWMD). The Financial Action Task Force (FATF) has been at the forefront of the global fight against ML/TF. The FATF has issued 40recommendations (FATF 40), these recommendations have been issued three times with each iteration representing enhanced guidance over the previous one. The current iteration absorbs the 9 Special Recommendations, which were issued subsequent to the events of 9/11.
In particular, the FATF has sought to provide guidance on how politically exposed persons (PEPs) should be supervised through Recommendation 12 and the publication and issuance of several different pieces of guidance to further expound on matters relating to PEPs. Several jurisdictions continue to contemplate the required legal and regulatory structure needed to fulfill the requirements of this Recommendation and its attendant methodology and guidance.