Regulations on Politically Exposed Persons Amended

On December 10, 2024, the Financial Intelligence Unit (UIF) issued Resolution 192/2024, amending the regulations on Politically Exposed Persons (PEP) to comply with Recommendations 12 and 22 and with the Financial Action Task Force (FATF) Guidance on PEP.

The main changes include:

-  Cases covered are reduced: personnel of the Legislative Branch, authorities of the management and administration bodies of business organizations (such as chambers and associations), and public officials responsible for administering public or private assets, or controlling or auditing public revenues, regardless of their nature, among others, are no longer considered PEP.

-  Review of the category of PEP by family ties or closeness: grandparents and grandchildren are excluded from the assumptions regulated under this category.

 

-  Cessation of PEP status: The reporting entities’ obligation to assess the risk level of a PEP after two years of having ceased in their position or function is eliminated. Instead, PEPs may voluntarily report it, so that this information can be considered in the analysis of the risk level and in the monitoring carried out by obliged entities

The Resolution became effective on December 10, 2024.