PEP is an abbreviation for Politically Exposed Person, a term that describes a person who has been entrusted with a prominent public function, or an individual who is closely related to such a person.

The terms PEP, Politically Exposed Person and Senior Foreign Political Figure are often used interchangeably, particularly in international fora. Although the term PEP is not used in FinCEN's regulations, it is to a great extent similar to the definition of Senior Foreign Political Figure, as defined if the USA PATRIOT Act and it is a term recognized (and defined) by the Wolfsberg Group of thirteen global banks. Neither the Financial Action Task Force on Money Laundering (FATF) definition nor the USA PATRIOT Act definition of this term are intended to include middle ranking or more junior individuals. The following examples are intended to serve as aids to interpretation:

• Heads of state, government and cabinet ministers;
• Influential functionaries in nationalized industries and government administration;
• Senior judges;
• Senior party functionaries;
• Senior and/or influential officials, functionaries and military leaders and people with similar functions in international or supranational organizations;
• Members of ruling royal families;
• Senior and/or influential representatives of religious organizations (if these functions are connected with political, judicial, military or administrative responsibilities)

Wolfsberg FAQ's on Politically Exposed Persons

http://en.wikipedia.org/wiki/Politically_exposed_person