It is crucial that banks address the issue of PEPs in their risk framework, referred to in paragraph 2, and group money laundering control policy. PEPs should be regarded as high-risk clients and, as a result, enhanced due diligence should be performed on this category of client. Heightened scrutiny has to be applied whenever PEPs or families of PEPs or closely associated persons of the PEP are the contracting parties or the beneficial owners of the assets concerned, or have power of disposal over assets by virtue of a power of attorney or signature authorisation.

The Wolfsberg principles provide additional guidance on how to recognise and deal with a PEP.  In addition to the standardised KYC procedures, the following prompts are appropriate to recognise a PEP: