Costa Rica and its definition of PEP.

Politically exposed persons (PEPs) are a group of individuals subject to heightened scrutiny under anti-money laundering measures. Over time, and thanks to collaboration among various governmental bodies, including the FATF, countries have strengthened their regulatory frameworks concerning these individuals. In this article, we will analyze how Costa Rica defines and regulates politically exposed persons (PEPs).

As in other parts of Latin America—such as the Dominican Republic, Argentina, or Ecuador—Costa Rica also has regulations in place for politically exposed persons. The relevant legal framework in Costa Rica includes the following regulations:

1. Law 7786 on narcotic drugs, psychotropic substances, unauthorized drugs, related activities, money laundering, and terrorist financing.
2. Law 8422 on the Fight Against Corruption and Illicit Enrichment in Public Service.
3. General Regulation 36948 on legislation against drug trafficking, related activities, money laundering, terrorist financing, and organized crime.

The Law on Money Laundering and Terrorist Financing serves as the backbone of Costa Rica’s entire prevention system. Among its provisions are measures related to politically exposed persons, including identifying and implementing controls over such individuals.

However, this law does not define who qualifies as a PEP in Costa Rica. For that, we must turn to the Regulation on Money Laundering and Terrorist Financing. This Regulation, among other things, governs financial activities to prevent money laundering and the financing of terrorism.

Article 22 sets out the basic regulatory framework for politically exposed persons. It states that obligated entities must apply “enhanced due diligence measures when dealing with clients considered to be politically exposed persons.”

This article also defines what constitutes a PEP in Costa Rica. According to Article 22, all public officials or individuals in public office who are required to submit a sworn asset declaration to the Office of the Comptroller General of the Republic, as established by the Law Against Corruption and Illicit Enrichment in Public Service, are considered PEPs.

List of PEPs in Costa Rica

In line with Costa Rican regulations, the list of PEPs includes public officials or persons in public office who are required to submit a sworn statement of assets, including the following:

1. Members of the Legislative Assembly, the President, and Vice Presidents of the Republic;
2. Ministers (with or without portfolio) or those appointed to an equivalent rank, and Deputy Ministers;
3. Principal and alternate justices of the Judiciary and the Supreme Electoral Tribunal;
4. Judges, both temporary and permanent;
5. The Comptroller General and Deputy Comptroller General of the Republic;
6. The Ombudsperson and Deputy Ombudsperson;
7. The Attorney General and Deputy Attorney General of the Republic;
8. The Prosecutor General of the Republic;
9. Deputy prosecutors, prosecutors, and assistant prosecutors of the Public Ministry;
10. Chancellors, comptrollers, or deputy comptrollers of public universities;
11. The General Regulator of the Republic;
12. Superintendents and respective managers of financial entities, securities, and pensions;
13. Chief officers of ministries;
14. Members of boards of directors, excluding non-voting auditors;
15. Executive presidents, managers, deputy managers, internal auditors or deputy auditors, and procurement officers of all public administration entities and public enterprises, including municipal councilors (regular and alternates) and mayors;
16. Customs officials, public procurement officers, and other public officials responsible for managing, overseeing, or collecting public funds or determining state revenues;
17. Officials who authorize expenditures with public funds, including employees of private legal entities who manage, guard, or are concessionaires of public funds, assets, or services.

In Costa Rica, the PEP status lasts for a particularly extended period. According to national provisions, individuals retain their PEP status for up to 8 years after leaving office. In the case of Heads of State or Presidents of a nation, the PEP status is held indefinitely.