1. What is a Politically Exposed Person (PEP)?
A Politically Exposed Person (PEP) is an individual who holds a prominent public position, or who has been entrusted with such a position in the past. This includes individuals in Malaysia, as well as in other countries. The definition of a PEP is based on international anti-money laundering and anti-terrorism financing standards to prevent the misuse of the financial system for illegal activities.
2. How do I know if I am a PEP?
You are considered a PEP if you hold or have held any of the following positions:
- Heads of State or Government: This includes the Yang di-Pertuan Agong, Rulers of States, Yang di-Pertua Negeri, Prime Minister, Deputy Prime Minister, and Menteri Besar/Chief Minister.
- Ministers and Senior Government Officials: This includes Federal and State Ministers, Deputy Ministers, and individuals with the rank of Secretary-General, Deputy Secretary-General, Director-General, or equivalent.
- Members of Parliament: This includes members of the Dewan Rakyat and Dewan Negara.
- Judiciary: This includes the Chief Justice and other judges of the Federal Court, Court of Appeal, and High Court.
- Military and Law Enforcement: This includes individuals with the rank of General (or equivalent) and above in the military, and the Inspector-General and Deputy Inspector-General of Police.
- Senior Executives of State-Owned Enterprises: This includes individuals in senior management positions at companies owned by the government.
- Senior Political Party Officials: This includes senior members of political parties.
- Senior Officials of International Organizations: This includes senior management and board members of international bodies.
3. Are my family members or close associates also considered PEPs?
Yes. The definition of a PEP extends to immediate family members and close associates. This includes:
- Family Members: Spouse, children (including step-children and adopted children), and parents.
- Close Associates: Individuals you have close business relationships with or who you jointly own a business or legal entity with.
4. Why does pitchIN need to know if I am a PEP?
As a regulated crowdfunding platform, pitchIN is required by law to identify and conduct enhanced due diligence on investors who are PEPs. This is a measure to prevent money laundering and terrorism financing. By identifying PEPs, we can better understand the source of their funds and ensure the integrity of our platform.
5. What happens if I am identified as a PEP?
If you are identified as a PEP, pitchIN will reach out to verify your identity and the source of your funds.
These are standard procedures and are not meant to inconvenience you. They are part of our commitment to complying with regulations and maintaining a safe and transparent platform for all our investors.