When you receive a loan offer from Qred, you will be asked if you are a PEP - Politically Exposed Person. In this blog post, we will explain why we ask this question and what it means to be a politically exposed person (PEP).
Why does Qred ask if you are a PEP when taking out a business loan?
According to the Danish Money Laundering Act, Qred is obliged to obtain information to determine whether the Customer, or the beneficial owner, is a politically exposed person (PEP).
What is PEP - Politically Exposed Person?
Politically Exposed Persons (PEPs) are individuals who hold a particular public office of trust and as a result may be susceptible to bribery and other corruption.
Examples of special public trusts:
- Head of State, Head of Government, Minister and Deputy or Assistant Minister, (ii) Member of Parliament
- Supreme Court judge, member of constitutional courts and other high courts
- Member of audit courts
- Member of the central bank board
- Ambassador or chargés d'affaires
- High-ranking officers in the armed forces
- Member of administrative, management or controlling bodies of state-owned enterprises
Qred is also obliged to obtain information if the Customer is a family member or close business partner of a politically exposed person
Immediate family members are defined as:
- Registered partners
- The children of the persons referred to in points 1 and 2
- The parents of the persons referred to in points 1 and 2
Close business partners are defined as:
- Persons who hold title to legal entities and legal arrangements or who otherwise have close business relations with a person who holds or has held a high public office.
- Persons who hold title to a legal entity or arrangement created for the benefit of a person who holds or has held a high public office.
If a person has not held a high-level profession for at least one year, they are no longer considered a politically exposed person.
Should you mark yourself as a PEP or not?
For you, this means that if you, as a business owner, also hold a public office (see examples outlined above), or a close family member and/or close business partner does, then you need to mark yourself as a PEP. If this is not the case, leave the box unchecked.
Are you unsure? Contact our customer service at 89 87 10 10 06.