What are Politically Exposed Persons?
Politically Exposed Persons ( PEP) means a person who has or has a public authority, among others, is a State Organizer as defined in the laws and regulations that control the State Operator, as well as / or a person who is recorded or has been recorded as a member of a political party that has an influence on the policies and operations of political parties, both Indonesian citizens and foreign nationals.
Politically Exposed Persons (PEP) is a term that refers to people who are believed to hold public office. PEP listed civil apparatus that refers to the laws that control the Civil Apparatus of the State as well as those who are members of political parties.
These people have influence in the operation of political parties and have the opportunity to expose the industry to legitimate risks and reputations that may be great due to the formation of fraud, such as corruption, money laundering, and bribery. Certainly, the industry that experienced it not only faced reputational destruction but also suffered fines and brand destruction.
That means carrying out a PEP check
Therefore, in order to urge the industry to always be transparent and have accountability at a time that coincides with mitigating these risks, the industry urgently needs to monitor the ethics of political and business ties by implementing a PEP check.
Although the involvement of a politician in the business of an industry is not regulated in the law, Indonesia has the Regulation of the Financial Services Authority No. 12 / POJK. 01/ 2017 compiled by OJK ( Financial Services Authority) linked PEP in the financial services industry.
PEP check can be tried either before the recruitment of candidates or against existing employees, most notably in high-risk industries as well as industries that require AML, for example, banks. PEP check can be tried through an even media check.
Who should implement a PEP check?
In carrying out a PEP check there is always the formation of false positives. Therefore, it means for the industry to carry out other checks, is background checks, credit checks, and bankruptcy checks so that it can be tried cross-checking the results. PEP check if tried with a method that is not suitable to take time, energy, and money, especially when tried by untrusted third parties.