On 3rd December, the blog “I Hate Money Laundering” posted a comment on changes being made to Guernsey AML law. The author comments on changes to the definition of what a politically exposed person (PEP) is, and when he/she stops being a PEP. He says that under the 3rd and 4th EU AML Directives suggest a cut-off of 12 months after a PEP has ceased being in the office or position that gave rise to him/her being a PEP. Guernsey, on the other hand, he says, appeared to take the position that once a PEP, always a PEP. A new draft amending law would provide for 3 categories of PEP – domestic PEP, foreign PEP and IOPEP (who work for international organisations). The rules for when they stop being a PEP would be –
- For domestic PEP, 5 years after they leave their role; and
- foreign PEP and IOPEP, 7 years after their leave their role, unless they are a higher-level PEP (e.g. head of state or head of their international organisation) or “have the power to direct the spending of significant sums” – is which case they remain a PEP.