AML: FCA finalises updated guidance on treatment of PEPs
The Financial Conduct Authority (FCA) has published finalised guidance (FG25/3) on the treatment of politically exposed persons (PEPs) under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLRs). The guidance follows consultation GC24/4 and should be read in conjunction with the FCA’s multi-firm review on the treatment of PEPs, both published in 2024. It confirms that the existing framework remains broadly appropriate, with amendments made to reflect legislative changes and stakeholder feedback. The guidance outlines how firms should apply a risk-based approach to identifying and managing PEPs, including domestic PEPs, their family members, and known close associates.