Uruguay and its definition of PEP

Just as other Latin American countries like Ecuador, Uruguay also develops the concept of politically exposed persons, PEP —. This definition originates from the recommendations established by the FATF, particularly recommendations 12 and 22; which required credit institutions and other obligated parties to know who their clients were and whether they held a significant position in the political spectrum, subsequently applying enhanced due diligence measures to them.

Delving into Uruguayan regulations, its framework for preventing money laundering is structured around two regulations:

• Law 19574 against money laundering,
• Regulation of Law 19574.

Both regulations delineate key considerations regarding PEP. The law of the State of Uruguay begins by defining PEP in its Article 20 as individuals who “perform or have performed, in the last five years, important public functions in the country or abroad, such as: heads of state or government, high-ranking politicians, governmental, judicial, or high-ranking military officials, representatives and senators of the Legislative Power, prominent political party leaders, directors and senior executives of state-owned companies and other public entities.” This definition also includes individuals who have held a high-ranking position in international organizations.

Additionally, as is common in all prevention regulations, the family members and close associates of politically exposed persons must also undergo a process of enhanced due diligence measures. These family members and close associates, as specified in Uruguayan regulations in Article 13 of the Prevention Regulation, will include “spouses, domestic partners, and their relatives by blood or affinity up to the second degree, as well as close associates of these individuals when they are publicly known and those who carry out transactions on their behalf.”

List of PEPs in Uruguay

Although the Uruguayan regulations do not provide a specific list of positions, the National Secretariat for the Fight Against Money Laundering and the Financing of Terrorism in Uruguay — SENACLAFT — has compiled a non-exhaustive list of positions in the Uruguayan administration that will be considered PEP:

1. President and Vice President of the Republic.
2. Secretary and Undersecretary of the Presidency of the Republic.
3. Ministers of State.
4. Holders of positions with General or National Directorate hierarchy and General Inspection of the Central Administration.
5. Undersecretaries of State, Chief Prosecutor, and Attorney General of the Nation.
6. Ministers of the Supreme Court of Justice, the Administrative Contentious Court, the Court of Accounts, and the Electoral Court. Attorney General of the State in Administrative Contentious Matters.
7. Members of the Courts of Appeal, Legal Prosecutors, Judges of Law, Peace Judges, and Clerks. 
8. National Senators and Representatives.
9. Municipal Intendants and Mayors.
10. Members of the Departmental Councils.
11. President, Vice President, and Directors of Autonomous Entities and Decentralized Services.
12. Generals of Land, Sea, and Air of the Armed Forces.
13. Chiefs, Deputy Chiefs, Inspectors, and Directors of the National Police.
14. State representatives on the boards of state agencies and mixed-economy companies.
15. Heads of Embassies, Consular Representations, and International Organizations under the United Nations, OAS, and MERCOSUR systems.

Moreover, Uruguay provides obligated parties with a list of individuals holding the positions enumerated by the Secretariat. This list has been compiled using data provided by various state agencies, including over 5000 individuals, and is collected and disseminated by SENACLAFT. Unlike other countries, Uruguay provides a complete list of positions that are considered PEP along with their names. This list facilitates the work of obligated parties in terms of money laundering prevention and also serves as significant support for external list providers.