When including a person into the national PEP category, we use the list of public office positions identified in paragraph 25 of part 25 of Article 1 of the Ukrainian Anti-money laundering law. The same paragraph also states that individual is considered to be a PEP if he/she had held one of the specified positions in the last three years.
According to Recommendation 12 of FATF (paragraphs 44, 45), when determining whether an individual is a PEP or has connections to a politically exposed person, it is better to consider not the timeframe, but the risk level associated with the current status of a person. Namely, it is necessary to consider whether a person has kept their influence level and connections, whether their current activity is connected with the previous public functions. Risk level of family members and persons connected with a PEP is correlated with the risk level retained by a politically exposed person.
That is why we do not delete information on individuals from the database after three years have passed, but their profile is in a different colour in order to show the possible lower risk associated with such person for financial monitoring purposes.
In cases we believe that the risk associated with the status of a person has preserved - the profile is not displayed in a different color, but we indicate the fact of expiring of three-year term. The user can find the dismissal date from the last position specified in the profile. We believe that the risk associated with the status of a national politically exposed person has preserved, if:
- a person is indicated in the sanction lists of Ukraine, the USA, the EU or a Member State of the European Union;
- a person is the subject of an international or all-Ukrainian manhunt, has the status of a suspect or accused in a criminal proceedings in Ukraine or abroad;
- a person who owns a large business that he/she has created or developed during his/her tenure in public office. Business uses state resources, permissions and licenses, participation in public procurement, takes a monopoly position;
- a person that hold the position of Minister of Mykola Azarov government from 2013 till February 2014.
- Information about deceased politically exposed persons (if we have information about their deaths) is also displayed in the Register.