What is politically exposed person (PEP)?
A politically exposed person (PEP) is one who is or has been entrusted with a prominent public function as head of state, minister, mayor, judge, member of a political party, etc. Persons related to PEP as a spouse, relative, partner are also subject to extended inspection by law.
The full text of Art. 36, para 2 / para 5 of the LMML:
Measures Against Money Laundering Act (Law on the Measures Against Money
Laundering)Promulgated, SG No. 27/27.03.2018, amended, SG No. 94/13.11.2018, effective 1.10.2018,
amended and supplemented, SG No. 17/26.02.2019, amended, SG No. 34/23.04.2019, SG No.
37/7.05.2019, amended and supplemented, SG No. 42/28.05.2019, effective 28.05.2019, SG No.
94/29.11.2019, supplemented, SG No. 18/28.02.2020, effective 28.02.2020, amended and
supplemented, SG No. 69/04.08.2020
__________
*Note: An update of the English text of this Act is being prepared following the
amendments in SG No. 69/4.08.2020, effective 8.08.2020
Text in Bulgarian: Закон за мерките срещу изпирането на пари
Article 36. (1) The persons referred to in Article 4 herein shall apply enhanced customer due diligence measures with respect to potential customers, existing customers and beneficial owners of a customer which is a legal person or other legal entity who are politically exposed persons in the Republic of Bulgaria, in another Member State or in a third country, or in international organisations, as well as with respect to potential customers, existing customers and beneficial owners of a customer which is a legal person or other legal entity who are closely linked with any such politically exposed persons.
(2) Politically exposed persons within the meaning given by Paragraph (1) shall be natural persons who are or who have been entrusted with prominent public functions:
1. heads of State, heads of government, ministers and deputy ministers or assistant ministers;
2. members of parliament or of other legislative bodies;
3. members of supreme courts, of constitutional courts or of other high-level judicial bodies, the decisions of which are not subject to appeal, except in exceptional circumstances;
4. members of a court of auditors;
5. members of the boards of central banks;
6. ambassadors and charges d’affaires;
7. high-ranking officers in the armed forces;
8. members of the administrative, management or supervisory bodies of State-owned enterprises and wholly State-owned commercial corporations;
9. municipality mayors and deputy mayors, borough mayors and deputy mayors and chairpersons of a municipal council;
10. members of the governing bodies of political parties;
11. heads and deputy heads of international organisations, members of the management or supervisory bodies at international organisations or persons performing an equivalent function in any such organisations.
(3) The categories defined in Items 1 to 7 of Paragraph (2) shall include, mutatis mutandis and if applicable, positions in the institutions and bodies of the European Union and in international organisations.
(4) The categories defined in Items 1 to 8 of Paragraph (2) shall not cover middle-ranking or more junior officials.
(5) For the purposes of Paragraph (1), the following shall be considered "closely linked persons":
1. the spouses or the de facto cohabitants;
2. the first-degree descendants and the spouses or the de facto cohabitants thereof;
3. the first-degree ascendants and the spouses or the de facto cohabitants thereof;
4. the second-degree correlative relatives and the spouses or the de facto cohabitants hereof;
5. any natural person who is known to have joint beneficial ownership with any person referred to in Paragraph (2) of a legal person or other legal entity or to be in other close commercial, professional or other business relationships with any person referred to in Paragraph (2);
6. any natural person who has sole ownership or sole beneficial ownership of a legal person or other legal entity which is known to have been set up for the benefit of any person referred to in Paragraph (2).
