What does PEP and OS mean?

We tell you what it means to be a politically exposed person and an obligated subject.

 

A PEP is a politically exposed person, as its name indicates, they are individuals who perform or have performed outstanding public functions. A PEP generally presents a higher risk of potential involvement in bribery and corruption because of his position and the influence he may have.

An OS is an obligated subject. The term “obligated” refers, in compliance, to those who must comply with certain specific regulations. An obligated subject is a natural person, legal entity and/or public body that, by law or regulation, is subject to a special compliance regime since the legislation considers them vulnerable to Money Laundering and Terrorist Financing.

Although they vary according to the jurisdictions, in general terms those considered OS (obligated subjects) are:

• Banks and financial institutions.

• Insurance and reinsurance companies.

• Money exchange and remittance houses.

• Securities companies and agencies.

• Investment companies.

• Trust administrators.

• Mutual investment and retirement fund administrators.

• Those that exploit games of chance.

• The real estate.

• The political parties.

• Non-profit organizations.

• The pawnshops.

• Government entities.

• The designated non-financial activities and professions.

• Dealers in jewelry, stones and precious metals.

• Objects of art and antiques, for philatelic or numismatic investment.

• Those that carry out acts of commerce in general, that imply transfers of money or values, whether formal or informal, in accordance with the provisions of the law.

If you are a PEP or OS, you must carry out an advanced KYC to open your account.