The Trustee is serious about protecting member money and the community, adhering closely to legislation aimed at reducing the risks of money laundering and terrorism.
Politically exposed persons (PEP)
Under anti-money laundering and counter terrorism laws, any member who is a Politically Exposed person (PEP) must let us know their status before a withdrawal or income stream transfer can be processed. This is because PEPs are at higher risk of corruption and coercion due to their access to public money so these preventative measures have been put in place.
All of our relevant forms ask if you are a PEP and processing of forms may be delayed if you do not answer that question.
Who is a PEP?
A politically exposed person is someone who holds a prominent public position or function, such as a Head of State, senior government official, High Court of Australia judge, high-ranking member of the armed forces or the Chair or CEO of an organisation that influences state or federal organisations.
The relatives and close associates of a PEP are also considered to be PEPs.
Under the AML/CTF Rules, there are three categories of PEP:
- Domestic PEP – those with a prominent position in an Australian government body
- Foreign PEP – those with a prominent position in a non-Australian government body
- International organisation PEP – those with a prominent position in an international organisation
Once the prominent position ends, the person is generally no longer regarded as a PEP.
As PEP status can change, it is necessary to declare your PEP status on all relevant forms before we can process your request for a withdrawal or to open an income stream.
What happens if someone fills in a form as a PEP?
Any member who indicates to us that they are a PEP will be checked against Government lists to ensure there is no issue. Assuming these checks are fine, the form will then be processed as per usual and a delay is unlikely.
If a PEP check raises any concerns, we will contact the member directly as part of processing the form.