This week the seldom talked about world of Politically Exposed Persons (PEPs) came into the spotlight after Nigel Farage claimed the banks did not want him as a customer due to him being a PEP.
The row between Farage and NatWest bank has already accounted for the heads of the CEOs of NatWest and Coutts, the prestigious private bank for the wealthy it owns, and looks set to rumble on.
In this podcast, we chat with a PEP expert Alia Mahmud, who is the Regulatory Affairs Practice Lead at compliance data provider ComplyAdvantage.
Mahmud tells us what exactly a PEP is; how fintechs manage PEP clients and the extra due diligence involved; and why fintechs and other financial institutions might want to reduce their number of PEP clients.
She says that being a PEP involves a “whole lot of complications” and Mahmud also tells us why it is “prudent” for fintechs not get publicly involved in commenting on clients’ political and social beliefs.