Can this agreement be signed electronically?

Yes. Electronic signatures meeting ESIGN and UETA requirements are legally valid (15 U.S.C. ch. 96; UETA). Ensure consent and retention of a reproducible record, and use stronger authentication for high-risk PEPs.

What supporting documents are required?

Typically a government ID, proof of address, documentation of source of funds (bank statements, contracts), and any public-office records. Attachments strengthen screening and auditability.

How often must a PEP be re-screened?

At minimum, re-screen at onboarding and at least annually for ongoing relationships; increase frequency for high-risk or high-value accounts per internal policy and FinCEN guidance.

Is notarization required?

Notarization is generally not required for PEP declarations, but some institutions or jurisdictions may ask for notarized attestations for higher assurance or for certain legal processes.

How should privacy be handled?

Limit access to PEP information to authorized compliance staff, follow state privacy laws (e.g., California CCPA), and document data-sharing consents where required.

What happens if inaccurate information is found later?

Document remediation steps, re-run screenings, escalate to the compliance officer, and retain records of the investigation and any corrective actions taken to demonstrate good-faith compliance.

Electronic Signature
Templates
Finance
Finance PEP Agreement

Finance PEP Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FINANCE PEP AGREEMENT

This Finance PEP Agreement (the Agreement) is made and entered into on Effective Date: between Financial Institution Name: with principal address: (Institution) and Client Name: (Client).

1. Purpose

The parties agree that additional due diligence, monitoring and reporting measures identified herein will apply because the Client has acknowledged potential status as a Politically Exposed Person (PEP) or associated with a PEP. The parties intend this Agreement to record the Client's disclosures, the Institution's enhanced compliance obligations, and the Client's consent to screening, monitoring and record retention.

2. Client Identification and Account

Client Date of Birth Client Identification Number (passport, national ID) Account Number / Reference Product or Service

3. PEP Status and Disclosures

Has the Client been a Politically Exposed Person within the past 12 months?

Yes No

If yes, indicate category(ies) that best describe the Client's PEP relationship (select all that apply):

Head of State or Government Senior Political Figure Senior Judicial Official Senior Military Official Family Member of PEP Close Associate of PEP Office or Position Held (if applicable) Jurisdiction of Office Additional Disclosures

4. Enhanced Due Diligence Measures

The Institution will apply enhanced due diligence (EDD) measures, which may include but are not limited to:

(a) Extended identity verification and documentation; (b) Additional source of wealth and source of funds verification; (c) Ongoing transaction monitoring and periodic review; (d) Requirement to provide additional documentation on request; (e) Reporting of suspicious transactions to competent authorities where required by law.

Source of Wealth / Source of Funds

5. Client Consent to Screening, Monitoring and Reporting

The Client hereby consents to such screening and monitoring as required by the Institution's compliance policies and applicable law, and further consents to the retention and disclosure of Client information to regulatory or law enforcement authorities where required by law.

I consent to screening, monitoring and disclosure as described above.

6. Fees, Charges and Operational Measures

The Client acknowledges that additional fees may be charged for enhanced due diligence, monitoring or reporting. Any such fees will be disclosed in writing prior to assessment and charged in accordance with the Institution's fee schedule.

Anticipated Monitoring Fee (if applicable)

The Institution reserves the right to impose restrictions on account activity, require additional approvals for transactions, or suspend services temporarily where required for compliance with law or to mitigate risk.

7. Certification; Accuracy of Information

The Client certifies under penalty of perjury that all information and disclosures provided in this Agreement and any accompanying documentation are true, complete and accurate to the best of the Client's knowledge. The Client understands that material misrepresentation or omission may result in termination of services and civil or criminal penalties where applicable.

8. Indemnification

The Client agrees to indemnify and hold harmless the Institution and its officers, employees and agents from and against any claims, losses, liabilities, costs and expenses (including reasonable attorneys' fees) arising out of or in connection with the Client's breach of this Agreement, false statements, or failure to provide requested information.

9. Data Protection and Confidentiality

The Institution will process and retain personal data in accordance with applicable data protection obligations. The Client acknowledges that certain disclosures may be made to competent authorities and that the Institution may retain records for the period required by law or its policies.

I consent to the processing and retention of my personal data as described above.

10. Governing Law and Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of:

11. Notices

Institution Notice Address Client Notice Address

12. Miscellaneous

No waiver by either party of any breach of this Agreement shall be deemed a waiver of any subsequent breach. If any provision is held invalid, the remaining provisions shall remain in full force and effect. This Agreement constitutes the entire agreement between the parties with respect to the subject matter herein.

Compliance Officer Name (for Institution) Compliance Contact (phone or email)

13. Acknowledgment and Signature

By signing below, the undersigned certifies that they are authorized to enter into this Agreement on behalf of the identified party, that they have read and understand the terms, and that the information provided is true and complete.

Client:

By:

Date:

Financial Institution:

By:

Date:

What the Finance PEP Agreement Is and when it applies

The Finance PEP Agreement is a structured declaration and onboarding document used by financial institutions and related parties to identify Politically Exposed Persons (PEPs), capture relevant identification and relationship details, and record enhanced due diligence measures required under anti-money laundering (AML) and Know Your Customer (KYC) programs. It documents the subject's public office, family and close associate relationships, source of wealth, and any controls or monitoring obligations imposed by the financial institution. The form supports internal risk classification, escalation to a compliance officer, and a permanent record of consent and attestations for later review.

Why a formal Finance PEP Agreement matters for compliance

A formal Finance PEP Agreement centralizes PEP-specific disclosures, establishes a documented audit trail for enhanced due diligence, and reduces regulatory exposure by ensuring consistent data capture at onboarding and during reviews under AML frameworks such as the Bank Secrecy Act and FinCEN guidance.

Typical users and participants for the Finance PEP Agreement

Who completes and processes this agreement within an organization.

Compliance teams and AML officers who review PEP risk and approve enhanced monitoring.
Relationship managers and account onboarding staff who collect identity, employment, and source-of-wealth details.
External legal or audit reviewers who examine records during periodic reviews or examinations.

These roles collaborate to verify identity, escalate high-risk cases, and retain the agreement as part of the customer file.

Primary signers and approvers

Account Holder

The individual or legal entity subject to the PEP declaration. The Account Holder attests to accuracy, provides identification, and signs to confirm consent and acknowledgement of monitoring.

Compliance Officer

An authorized compliance representative signs to confirm receipt, review, and any imposed enhanced due diligence or monitoring requirements, documenting approval or escalation steps in the compliance record.

Core sections to include in a professional Finance PEP Agreement

A comprehensive PEP agreement groups identity and risk information into clear sections to support consistent review and defensible recordkeeping during audits and regulatory examinations.

PEP Identification

Full legal name, aliases, date of birth, citizenship, and government office held with dates and title to establish PEP status and scope of exposure.

Relationship Mapping

List of immediate family members and close associates, their relationship to the PEP, and any known financial or business links relevant to risk assessment.

Source of Wealth

Clear description of primary income sources, recent large transactions, and documentation evidencing lawful origin of funds.

Risk Classification

Institution-defined risk score, reason for elevated risk (e.g., high office, foreign exposure), and required monitoring frequency or controls.

Verification Evidence

IDs, public records, media checks, and third-party AML screening results attached or referenced for auditability.

Approvals & Monitoring

Signatures, dates, assigned monitoring owner, review intervals, and remediation steps when required by compliance policy.

Essential data elements to collect

Legal Name: Full official name as on government ID

Date of Birth: MM/DD/YYYY format

Citizenship: Country or countries of citizenship

Public Office: Title, jurisdiction, and term dates

Relationships: Family and close associates with relationship type

Source of Funds: Primary income and asset origins

Step-by-step: completing and processing the Finance PEP Agreement

A concise onboarding sequence ensures the agreement is collected, verified, and routed to compliance for approval without missing steps.

01

Collect ID: Obtain government ID and supporting documents
02

Complete Form: Fill fields with precise legal and relationship details
03

Run Screening: Perform PEP/sanctions and adverse media checks
04

Approve & File: Compliance signs, assigns monitoring, and archives

Configuring an online PEP agreement workflow

Key configuration choices affect signer experience, verification rigor, and auditability when completing the form online.

Field	Configuration
Authentication	Email + SMS code or KBA for higher risk
Attachments	Allow PDF upload for ID and proof of funds
Conditional Fields	Reveal relationship fields when PEP checkbox selected
Audit Trail	Enable IP, timestamp, and document history capture

Where to send and how the signed PEP agreement flows

Define the destination routing so signed agreements enter compliance systems and records reliably.

Submit to Compliance: Route signed copy to AML/Compliance inbox
Attach to File: Save in customer file in document repository
Trigger Monitoring: Create case in transaction monitoring system
Periodic Review: Schedule follow-up reviews per policy

Digital signing and eSubmission considerations

Ensure the eSignature platform supports required security, audit, and integration features for PEP workflows.

Authentication: Support for SMS codes, KBA, or stronger ID verification
Audit Trail: Capture IP, timestamps, and signer actions
Integrations: Connectors to CRM, case management, and document storage

Choose a platform that meets ESIGN/UETA standards, preserves tamper-evident records, and integrates with screening and monitoring systems.

Key timing: initial collection and periodic review schedule

Timing requirements determine when the agreement must be collected and when reviews occur for ongoing PEP monitoring.

Onboarding Collection:

Collect at account opening; do not delay acceptance of funds

Immediate Screening:

Run sanctions/PEP checks before account activation

Enhanced Review:

Perform enhanced due diligence on high-risk PEPs promptly

Periodic Re-Check:

Re-screen at least annually or more frequently per policy

Event-Triggered:

Reassess after material transactions or adverse media

Common mistakes to avoid when preparing a PEP agreement

Using incomplete names or initials that fail automated screening matches and create false negatives.
Omitting family or close associate details, which underreports exposure and undermines risk assessment.
Failing to attach verification documents (IDs, proof of funds), delaying compliance approval.
Not documenting approvals or monitoring assignments, weakening the audit trail for examiners.

Consequences of incorrect or missing PEP documentation

Regulatory Fines: Civil penalties and fines under AML enforcement

Operational Risk: Account freezes or transaction holds during remediation

Reputational Harm: Negative findings in audits or press coverage

Increased Scrutiny: More frequent exams and supervisory actions

Criminal Exposure: Possible referral if deliberate evasion is detected

Customer Impact: Delays or termination of services for the client

eSignature vendor comparison for processing Finance PEP Agreements

Compare common vendor characteristics relevant to secure collection, audit trails, and enterprise integrations. signNow is listed first for reference.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about completing a Finance PEP Agreement

Answers to common questions about form validity, electronic signing, evidence requirements, and recordkeeping for PEP documentation.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures meeting ESIGN and UETA requirements are legally valid (15 U.S.C. ch. 96; UETA). Ensure consent and retention of a reproducible record, and use stronger authentication for high-risk PEPs.
What supporting documents are required?
Typically a government ID, proof of address, documentation of source of funds (bank statements, contracts), and any public-office records. Attachments strengthen screening and auditability.
How often must a PEP be re-screened?
At minimum, re-screen at onboarding and at least annually for ongoing relationships; increase frequency for high-risk or high-value accounts per internal policy and FinCEN guidance.
Is notarization required?
Notarization is generally not required for PEP declarations, but some institutions or jurisdictions may ask for notarized attestations for higher assurance or for certain legal processes.
How should privacy be handled?
Limit access to PEP information to authorized compliance staff, follow state privacy laws (e.g., California CCPA), and document data-sharing consents where required.
What happens if inaccurate information is found later?
Document remediation steps, re-run screenings, escalate to the compliance officer, and retain records of the investigation and any corrective actions taken to demonstrate good-faith compliance.

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