We have written to MPs, peers and other interested parties
The Politically Exposed Persons (PEPs) regime means that firms are required by law to undertake extra checks on political figures, their families and known close associates. This derives from the international standards issued by the Financial Action Taskforce[1]. They are necessary due to the possibility that a PEP may be in a position to abuse their public office for private gain and to use the financial system to launder the proceeds of this. We published guidance[2] for financial services firms in 2017 to help them apply a proportionate and risk-based approach to PEPs.
We are currently reviewing how financial services firms have applied the PEPs regime and whether changes to our guidance are required. This follows feedback we’ve received and is in line with the requirements of the Financial Services and Markets Act 2023.
We are keen to hear directly from UK PEPs on their experiences, including any problems they or their family members have encountered. To support this, we are proactively reaching out to parliamentarians, chairs of the political parties and other UK PEPs[3] (including senior civil servants and the senior ranks of the armed forces) at an early stage.
We will publish the full terms of reference for the review in September and report back by June next year, as set out in the Act. The findings will inform any subsequent steps.
This review is separate to our recent request for data[4] on account closures. That will report back by mid-September. If individuals have concerns about their account, they are able to complain first to the firm and then the Financial Ombudsman Service[5].