What is a Domestic Politically Exposed Person (DEP), a Foreign Politically Exposed Person (FPEP) or a Prominent Influential Person (PIP) in South Africa?

In general terms, these are three categories of persons who hold or have been entrusted with a prominent public function and includes those who had occupied such functions in the past.

FINANCIAL INTELLIGENCE CENTRE ACT 38 of 2001 (as amended) defines these categories in Schedules 3A, 3B and 3C:

SCHEDULE 3A DOMESTIC POLITICALLY EXPOSED PERSON

  1. holds, including in an acting position for a period exceeding six months, or has held a prominent public function in the Republic, including that of–
    1. the President or Deputy President;
    2. a government minister or deputy minister;
    3. the Premier of a province;
    4. a member of the Executive Council of a province;
    5. an executive mayor of a municipality elected in terms of the Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998);
    6. a leader of a political party registered in terms of the Electoral Commission Act, 1996 (Act No. 51 of 1996);
    7. a member of a royal family or senior traditional leader as defined in the Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003);
    8. the head, accounting officer or chief financial officer of a national or provincial department or government component, as defined in section 1 of the Public Service Act, 1994 (Proclamation No. 103 of 1994);
    9. the municipal manager of a municipality appointed in terms of section 54A of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000), or a chief financial officer designated in terms of section 80(2) of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003);
    10. the chairperson of the controlling body, the chief executive officer, or a natural person who is the accounting authority, the chief financial officer or the chief investment officer of a public entity listed in Schedule 2 or 3 to the Public Finance Management Act, 1999 (Act No. 1 of 1999);
    11. the chairperson of the controlling body, chief executive officer, chief financial officer or chief investment officer of a municipal entity as defined in section 1 of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000);
    12. a constitutional court judge or any other judge as defined in section 1 of the Judges’ Remuneration and Conditions of Employment Act, 2001 (Act No. 47 of 2001);
    13. an ambassador or high commissioner or other senior representative of a foreign government based in the Republic; or
    14. an officer of the South African National Defence Force above the rank of major-general;
  2. …
  3. holds, including in an acting position for a period exceeding six months, or has held the position of head, or other executive directly accountable to that head, of an international organisation.

SCHEDULE 3B FOREIGN POLITICALLY EXPOSED PERSON

A foreign politically exposed person is an individual who holds, or has held, in any foreign country a prominent public function including that of:

  1. Head of State or head of a country or government;
  2. member of a foreign royal family;
  3. government minister or equivalent senior politician or leader of a political party;
  4. senior judicial official;
  5. senior executive of a state owned corporation; or
  6. high-ranking member of the military.

SCHEDULE 3C PROMINENT INFLUENTIAL PERSON

A prominent influential person is an individual who holds, or has held at any time in the preceding 12 months, the position of:

  1. chairperson of the board of directors;
  2. chairperson of the audit committee;
  3. executive officer; or
  4. chief financial officer

of a company, as defined in the Companies Act, 2008 (Act No. 71 of 2008), if the company provides goods or services to an organ of state and the annual transactional value of the goods or services or both exceeds an amount determined by the Minister by notice in the Gazette.

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