Who qualifies as a Politically Exposed Person (PEP)?

A Politically Exposed Person (PEP) is defined as an individual who holds a prominent public function, which can include positions in government, judicial, military, and other key areas that can influence decision-making processes. The reason option C is correct lies in the definition of a PEP, which focuses on the potential risks associated with their role in public office and the increased exposure to corruption or money laundering.

PEPs are typically considered to be at higher risk for facilitating illegal activities since they may have access to significant resources and decision-making power. This elevated risk warrants additional scrutiny from financial institutions and other entities to ensure compliance with anti-money laundering (AML) regulations and measures designed to prevent corrupt practices.

In contrast, simply having held a political office does not encompass the broader category of individuals holding prominent public functions as described in option C; just because someone was in office for a limited time does not automatically classify them as an ongoing PEP. High-net-worth individuals, mentioned in option B, do not inherently qualify as PEPs unless they hold or have held those prominent public positions. Lastly, social media influencers, referenced in option D, may have significant reach and influence, but this does not equate to the political authority or risk profile assigned to