Identification and Exchange of Information on Politically Exposed Persons in Central American Countries

Accesible PDF image
Jorge, Guillermo
Aug 2018
In the fight against money laundering, information on politically exposed persons (PEPs) is highly relevant for financial institutions as it is about customers deemed to be high-risk due to their public functions and the degree of influence they can exert. This document reviews the regulatory and operational frameworks to access and exchange of information on PEPs in Central American countries, as well as the enhanced due diligence measures under implementation in these countries. The main findings indicate that there are legal constraints in relation to the definition of PEPs and the obligation to declare beneficial owners. There are also operational constraints in terms of the measures implemented to identify PEPs and to ensure the integrity of information systems. Likewise, this document presents recommendations to address the barriers identified and analyzes best practices to help strengthen the detection and prevention mechanisms used by Central American governments and financial institutions for cases in which PEPs use the financial system to launder money obtained through corruption and related crimes.