Posted on by Juan Carlavilla

Germany and its definition of PEP

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Germany and its definition of PEP. Foto por Maeshkumar.

Germany, much like its continental counterparts such as Italy, Portugal, or Sweden, has also incorporated the concept of a politically exposed person (PEP) into its legal framework. This regulation stems from initiatives driven by the FATF and the legislative developments facilitated by European Directives.

The German legislation defines PEPs under the law Gesetz über das Aufspüren von Gewinnen aus schweren Straftaten. This regulation serves as a cornerstone for anti-money laundering and counter-terrorism financing measures in Germany, encompassing various European directives transposed over the years.

German regulations define as family members of politically exposed persons: the spouse, PEP descendants and their partners, as well as any parent.

They also consider as close associates:
– Natural persons jointly holding beneficial ownership of a legal entity, trust, or similar organization with a PEP.

– Natural persons who are the sole owners of a legal entity established to benefit a PEP.

Article 1, section 13, defines politically exposed persons. Obligated entities must determine if a client qualifies as a politically exposed person. If identified as a PEP, enhanced due diligence measures must be applied in their dealings with the client.

Additionally, the list issued by the European Commission under Article 20a of the Directive 2015/849 must also be considered.

Germany’s PEP List

The public offices holding PEP status in Germany include:

  • Heads of State, heads of government, ministers, members of the European Commission, deputy ministers, and secretaries of state.
    • Federal President (Bundespräsident), Federal Chancellor (Bundeskanzler), Federal Ministers, Parliamentary State Secretary, Minister of State, State Secretary
  • Members of parliaments and comparable legislative bodies.
    • Members of the German Bundestag, Members of the Bundesrat
  • Members of the governing bodies of political parties.
    • Federal Council Members, Party Executive Members
  • Members of supreme courts, constitutional courts, or other high-level courts whose decisions are generally not subject to appeal.
    • President of the Federal Constitutional Court (Bundesverfassungsgericht), Judges of the Federal Constitutional Court; President of the Federal Court of Justice (Bundesgerichtshof), Judges of the Federal Court of Justice; President of the Federal Labour Court (Bundesarbeitsgericht), Judges of the Federal Labour Court; President of the Federal Administrative Court (Bundesverwaltungsgericht), Judges of the Federal Administrative Court; President of the Federal Social Court (Bundessozialgericht), Judges of the Federal Social Court; President of the Federal Fiscal Court (Bundesfinanzhof), Judges of the Federal Fiscal Court; President of a State Constitutional Court (Landesverfassungsgerichtshof), Judges of a State Constitutional Court
  • Members of the governing bodies of audit courts.
    • President and Vice President of the Federal Court of Auditors (Bundesrechnungshof), President and Vice President of the State Audit Court (Oberster Rechnungshof) of a federal state
  • Members of the governing bodies of central banks.
    • Members of the Board of the Deutsche Bundesbank
  • Ambassadors, chargés d’affaires, and defense attachés.
    • Ambassador and Military Attaché
  • Members of the management, governing, or supervisory bodies of state-owned enterprises.
    • Management, governing, or supervisory board members of companies where the federal or state governments hold more than a 50% stake, employing over 2,000 staff, or with a balance sheet exceeding EUR 3 billion.
  • Directors, deputy directors, governing board members, or equivalent responsible officials in intergovernmental or European organizations.

Below, we detail the primary sources used by Pibisi to extract Germany’s PEPs:

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Photo by Álvaro Serrano

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