Posted by laurielnc on 10/13/09 12:36pm
Msg #307146

New form to me: Politically Exposed Persons Disclosure

Has anyone seen this before? They sign document that they are not entrusted with any prominent public function in a foreign country such as head of state or Government, a senior politician. If at some point in the future I become a politically exposed person, I shall advice my Loan Officer or Loan Consultant of my change in status accordingly.

There is alittle more to the doc but this is in a regular refi.

Reply by MW/VA on 10/13/09 12:45pm
Msg #307149

I've seen this a couple of times. I don't understand the purpose of it being in the package.
Maybe PAW knows more about this.

Reply by PAW on 10/13/09 2:14pm
Msg #307162

Seen it quite a bit while working at the bank after 9/11.

The question remains "are banks and credit unions required to monitor PEPs (Politically Exposed Persons)?" The answer is "Yes" or "No," depending on whether the PEP is foreign or domestic. The U.S. Patriot Act of 2001 requires monitoring of foreign PEPs.

There isn't a global definition for a PEP, but the Financial Action Task Force (FATF) has issued guidelines in which the term was defined.

For more information, read a good article on the subject at http://www.bankinfosecurity.com/articles.php?art_id=873

Reply by LynnNC on 10/13/09 1:13pm
Msg #307157

I have seen the document on a few occasions.

Reply by ChristineHI on 10/13/09 2:27pm
Msg #307163

I just saw it for the first time last week. The borrower and I laughed actually at the words "politically exposed". Just sounds funny. I thought maybe it was for people with diplomatic immunity. I've only seen it this one time though. :-)

Reply by Cari on 10/13/09 2:39pm
Msg #307165

I believe the form was created to prevent another Enron...

I would even go as far as saying that the gov't is now keeping closer tabs (or trying to at least) on those gazillionaires abusing the financial system.

And if this PEP form is their way of keeping the tabs non-public.

Reply by MW/VA on 10/13/09 2:48pm
Msg #307168

Re: I believe the form was created to prevent another Enron...

I don't see the connection. It is a form tied to the Patriot Act. I can assure you that the times I encountered it, it was NOT an issue for the borrowers, even though some may be military.

Reply by LindaD/NJ on 10/13/09 8:56pm
Msg #307222

Yes, I had one tonight in the pkg. for the borrowers to sign. Don't know if I should list the lender.