Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what guidance has (a) HM Treasury and (b) the FCA given to financial institutions on removing an individual from being treated as a Political Exposed Person from their records once they cease to meet the definition of a PEP under FCA guidance.

The FCA publishes guidance on the requirements of the Money Laundering Regulations (MLRs) with regard to politically exposed persons (PEPs). The guidance is clear that financial institutions must treat PEPs as a PEP for at least 12 months after they leave office, and should apply enhanced due diligence (EDD) measures beyond that only in higher risk circumstances. The guidance is also clear that family members of PEPs should cease to be subject to EDD measures as soon as the person is no longer a PEP, absent any other higher risk factors.