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What is a PEP/HIO?
What is a PEP/HIO?

In this article, we explain what PEP/HIO is.

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Written by NEO.bet
Updated over a year ago

PEP

A Foreign PEP (PEFP) - means a foreign politically exposed person, and would be an individual outside of Canada who holds an office or position in or on behalf of a foreign state. Once an individual is determined to be a foreign PEP (PEFP), they remain a PEFP forever (including deceased).

The following is a non-exhaustive list of foreign positions or offices held outside of Canada:

  • Head of state or head of government;

  • Member of the executive council of government or member of a legislature;

  • Deputy minister or equivalent rank;

  • Ambassador, or attaché or counsellor of an ambassador;

  • Military officer with a rank of general or above;

  • President of a state-owned company or a state-owned bank;

  • Head of a government agency;

  • Judge of a supreme court, constitutional court or other court of last resort; or

  • Leader or president of a political party represented in a legislature.

Domestic PEP (PEDP) - means a domestic politically exposed person, and would be an individual in Canada who holds or has held in last five (5) years, an office or position on in or on behalf of a Canadian federal government or a Canadian provincial government or a Canadian municipal government. An individual ceases to be a PEDP after they have left office or five (5) years after they are deceased.

The following is a non-exhaustive list of domestic positions or offices held in Canada:

  • Governor General, lieutenant governor or head of government;

  • Member of the Senate or House of Commons or member of a legislature;

  • Deputy minister or equivalent rank;

  • Ambassador, or attaché or counsellor of an ambassador;

  • Military officer with a rank of general or above;

  • President of a corporation that is wholly owned directly by Her Majesty in right of Canada or a province;

  • Head of a government agency;

  • Judge of an appellate court in a province, the Federal Court of Appeal or the Supreme Court of Canada;

  • Leader or president of a political party represented in a legislature;

  • Holder of any prescribed office or position; or

  • Mayor

HIO

HIO - means a head of international organisation, and would be an individual who holds or has held within the last five (5) years the specific office or position of head of an international organization and the international organization that they head or were head of is either:

• an international organization established by the governments of states; or

• an institution established by an international organization.

An institution established by an international organization does not necessarily have to operate internationally, it could operate domestically, or in one jurisdiction. An individual ceases to be an HIO five (5) years after they are no longer the head of the organization or the institution or five (5) years after they are deceased. HIO is referred to the primary person who leads the organization, for instance a President or CEO could be an HIO.

Examples of international organizations and institutions include (Note: This is not an exhaustive list):

  • International Organization for Migration

  • Wealth Health Organization

  • World Trade Organization

  • Basel Committee on Banking Supervision

  • World Customs Organization

  • World Bank Group

  • International Monetary Fund

Family Member of a PEP/HIO

A family member - is a person who is related to a PEDP, PEFP, HIO.

This includes:

  • Mother(s) or father(s)

  • biological or adoptive child(ren)

  • spouse or common-law partner

  • mother or father of a spouse or common-law partner

  • a sibling.

Close associate

A close associate - is an individual who is closely associated to a PEDP, PEFP, HIO personally or professionally.

Examples could include, but are not limited to, persons who:

  • are the business partners of, or who beneficially own or control a business with, a PEP or HIO

  • are in a romantic relationship with a PEP or HIO

  • are involved in financial transactions with a PEP or a HIO

  • serve as prominent members of the same political party or union as a PEP or HIO

  • serve as a member of the same board as a PEP or HIO

  • carry out charitable work with a PEP or HIO

  • are listed as joint on a policy where one of the holders may be a PEP or HIO.

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