#Boardroom101: The pitfalls of being classified as a PEP (Politically Exposed Person)
"Many people are not aware that something you have no control over can result in you being classified a PEP, with all the discomforts that go with it," says Hixonia Nyasulu.
Listen to the podcast or read the details below:
Working for a certain company or organisation, having business relationships with the wrong people, even being the son/daughter of certain people, can have life-changing implications for you.
Many organisations, in their KYC and reference checks, will often include the search for whether or not you are a PEP.
Issues With Being A PEP
They might not tell you explicitly that that’s the reason they chose not to offer you the job, but your being classified a PEP could make it difficult for you to fulfill certain roles, visit certain countries, handle certain transactions, etc.
The scrutiny of OFAC (US Office of Foreign Asset Control), UN, and certain overseas countries and bodies is something companies with a global footprint wish to avoid.