A PEP (Politically Exposed Person) is an individual who holds or has previously held a prominent public position. This definition also includes close family members and known associates of such individuals.
Want to know more about the verification process in Weltrade? Read our Help Center article: How to verify your Weltrade account (KYC)
Under anti-money laundering (AML) regulations, PEPs are considered higher-risk clients due to the increased risk of corruption, bribery, or misuse of public office. As a result, they are subject to stricter regulatory controls.
What is a PEP declaration?
A PEP declaration is a mandatory disclosure made during the verification process in which you confirm whether you:
Are a PEP
Are a family member of a PEP
Are a close associate of a PEP
This declaration is required for regulatory compliance and applies to all clients without exception.
Why is a PEP declaration required?
Mauritius AML and FIAMLA regulations require Investment Dealers to identify higher-risk clients and apply enhanced controls where necessary. As a licensed Investment Dealer, Weltrade Global Ltd is required to collect PEP information to meet these legal obligations.
What happens if I am identified as a PEP?
Weltrade Global Ltd does not onboard or provide services to PEPs.
If you are identified as a PEP:
Your application or verification will be rejected, or
Your account may be restricted or closed, if already created
This decision is based on internal risk policies and regulatory requirements and is not discretionary.
What if I do not declare my PEP status correctly?
Failure to provide accurate or complete PEP information will result in account suspension.
If there has been any movement of funds, such activity may become subject to enhanced AML checks, which may include:
Temporary blocking of transactions
Additional compliance review
Extended investigation timelines
Providing false or misleading information may also constitute a breach of the Terms of Service.
Key takeaways
PEP declarations are a mandatory regulatory requirement. Politically Exposed Persons are not accepted as clients. Accurate disclosure is essential to avoid account suspension, transaction blocking, or compliance investigations.