PEP & Grand Corruption Proceeds
Laundering the proceeds of grand corruption through or on behalf of politically exposed persons. Funds typically move through shell company layers, nominee arrangements, family members and close associates, and are placed into high-value assets such as real estate, luxury goods, and investment portfolios to obscure illicit origin.
What it is
Laundering the proceeds of grand corruption through or on behalf of politically exposed persons. Funds typically move through shell company layers, nominee arrangements, family members and close associates, and are placed into high-value assets such as real estate, luxury goods, and investment portfolios to obscure illicit origin.
Control objective
Identify and scrutinise funds connected to PEPs, their family members, and close associates where transaction patterns, source of wealth, or ownership structures are inconsistent with legitimate office-derived income and may represent proceeds of corruption.
Data required
- PEP status and category (domestic, foreign, international organisation)
- Source of wealth and source of funds documentation
- Beneficial ownership and control structures of connected entities
- Family member and close associate (RCA) linkages
- Declared income and public-office tenure versus asset values
- Cross-border payment corridors and intermediary jurisdictions
- High-value asset purchases (real estate, luxury, securities)
- Adverse media and sanctions screening results
Related typologies (Bribery & Corruption)
Bribery & Facilitation Payments
Corporate bribery and facilitation payments disguised as legitimate business spend. Common forms include inflated or fictitious consultancy and intermediary fees, round-sum payments to agents in high-risk jurisdictions, and success fees that lack commercial substance and are used to channel improper payments to officials or counterparties.
State-Linked Infrastructure Corruption
Politically connected individuals and their associates extract bribes and kickbacks from construction and infrastructure contracts awarded by state or quasi-state entities. Proceeds flow through intermediary consultants, inflated invoices and nominee corporate structures before being layered into the financial system, often passing through private banking accounts and cross-border transfers before integration into apparently legitimate assets.