What qualifies someone as a PEP?

A PEP is an individual who holds or has held a prominent public position, plus immediate family and close associates. Institutions use this classification to apply enhanced due diligence and screening measures.

Can the declaration be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act and UETA for U.S. transactions, provided intent, consent, attribution, and reproducible retention are satisfied.

Is notarization required for validity?

Not usually. Notarization or RON may be required only when an institution's policies or a specific legal process demands additional authentication or when state law requires it.

How often must the declaration be updated?

Update frequency depends on risk and policy; many firms require annual refreshes or prompt updates following material changes in status, office, or relationships.

What happens if a declaration is inaccurate?

Inaccurate or incomplete declarations can lead to regulatory findings, increased review, account restrictions, and potential enforcement actions depending on the severity and intent.

How long should records be kept?

Retain records per applicable law and policy. Common practice is to retain PEP-related documentation for multiple years after account closure; federal and industry rules may require three to seven years or longer.

Electronic Signature
Templates
Finance
Financial PEP Declaration

Financial PEP Declaration

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

FINANCIAL PEP DECLARATION

This Financial PEP Declaration is provided to assist the financial institution in meeting its obligations under anti-money laundering and countering the financing of terrorism policies. Client Name: ; Account / Reference No.: .

Client Identification

Full Legal Name Date of Birth Nationality / Citizenship Residential Address Identification Document

PEP Status

Politically Exposed Person (PEP) status applies to individuals who are or have been entrusted with prominent public functions, their immediate family members, or persons known to be close associates. Please indicate which of the following apply to the person named above (check all that apply):

PEP Categories I am a current or former PEP (self) Immediate family member of a PEP Close associate of a PEP None of the above / Not a PEP

If any PEP category is selected, provide details of the public function, office or relationship including title, jurisdiction and dates held (if applicable).

If applicable, Title / Office / Relationship Jurisdiction / Country

Office Start Date

Office End Date (if applicable)

Professional & Financial Information

Occupation / Position (if not PEP) Employer / Source of Income Source of Funds / Wealth (provide sufficient detail)

Declaration and Consent

I, the undersigned, declare that the information provided in this Financial PEP Declaration is true, complete and correct to the best of my knowledge. I acknowledge that the financial institution will rely on this declaration when conducting customer due diligence and ongoing monitoring. I undertake to notify the institution promptly in writing of any change in the information provided herein.

I understand that providing false or misleading information may result in account restrictions, termination of services, and may be subject to civil or criminal penalties under applicable law. I consent to the institution performing any checks or enquiries it deems necessary to verify the information herein, including screening against domestic and international watchlists and obtaining additional documents.

I consent to identity verification and screening as described above. I will notify the institution within 30 days of any change to this declaration. I understand the consequences of false statements and certify the truthfulness of this declaration.

Authorized Representative (if signing on behalf of Declarant)

If this declaration is executed by an authorized representative, provide representative details and attach evidence of authority.

Representative Full Name Representative Capacity / Authority Authority Document Reference

Institution Use Only

(To be completed by institution compliance officer) Screening result: . Risk rating assigned:

Compliance Notes

Declarant Name:

Signature:

Date:

What the Financial PEP Declaration Is and Why It Exists

The Financial PEP Declaration is a standardized compliance form used by financial institutions to record whether an individual is a Politically Exposed Person (PEP), a close associate, or an immediate family member. It gathers identifying details, current and historic public positions, and relationship information to support enhanced due diligence, screening, and transaction monitoring. The declaration helps firms document risk decisions, record reviewer findings, and maintain an audit trail. Electronic execution and retention are generally accepted under the ESIGN Act and UETA for U.S. transactions.

Why completing a Financial PEP Declaration matters

A completed declaration documents PEP status for AML/KYC programs, enables appropriate enhanced due diligence, and creates an auditable record for examiners. It reduces uncertainty during onboarding, clarifies escalation criteria for high-risk profiles, and supports consistent treatment across accounts and business lines.

Who typically completes and reviews this declaration

The Financial PEP Declaration is used by several internal teams and external parties during onboarding and reviews.

Compliance officers and AML teams at banks and credit unions responsible for risk assessment and regulatory filings
Private banking, trust and wealth management teams verifying client risk and conducting enhanced due diligence
Legal counsel and onboarding specialists who review declarations during account opening and periodic reviews

Use this form whenever an individual may hold public office, be related to a public official, or when transaction screening flags elevated risk.

Essential elements to include in a professional declaration

A complete PEP declaration combines identity data, role history, relationship details, wealth source, jurisdictional exposure, and consent language to support compliant decision making.

PEP Type

Specify whether the person is a domestic PEP, foreign PEP, international organization official, immediate family member, or close associate, and identify the category consistently.

Position Details

List current and recent public offices, official titles, employer or agency names, and dates held to establish the timeframe of political exposure and its relevance.

Relationship

Describe the exact relationship to the PEP (spouse, parent, sibling, business partner), including names and identification to support linkage verification.

Source of Wealth

Provide a concise description of primary funding sources and major income or asset origins so compliance teams can assess unexplained or disproportionate wealth.

Jurisdictions

Identify countries, states, or international organizations where the subject held office or maintains significant political exposure to flag local legal or sanction risks.

Consent & Authorization

Include a signed consent for background checks and data processing, and a statement authorizing verification of employment, public records, and sanctions screening.

Required identity and risk data fields

Full Legal Name: Family and given names

Date of Birth: MM/DD/YYYY

Nationality: Country of citizenship

Official Position: Title and agency

Relationship Type: Spouse, family, associate

Source of Wealth: Primary income/assets

Step-by-step: completing a Financial PEP Declaration

Follow these sequential steps to complete, verify, and submit the declaration accurately and consistently.

01

Gather documents: Collect ID, proof of position, and source-of-funds documentation.
02

Complete fields: Enter names, dates, relationships, and position history carefully.
03

Attach evidence: Upload scans of IDs, appointment letters, and financial statements.
04

Sign and submit: Sign the form and route to compliance for review and retention.

Typical digital workflow settings for e-submission

Configure the signing workflow to collect required evidence, authenticate signers, and preserve an audit trail for compliance review.

Field	Configuration
Signing Order	Sequential or parallel as required
Authentication	Email plus SMS code or stronger
Required Attachments	Government ID, employment proof, financial documents
Retention Setting	Encrypted storage, access logging enabled

Where to send and how filing works

Understand submission destinations and the routine routing that follows a completed declaration.

Submit to Compliance: Send the signed declaration to the compliance mailbox or case management system.
Verification: Compliance verifies identity, position history, and attached evidence.
Enhanced Due Diligence: If flagged, escalate for EDD and additional documentation.
Recordkeeping: Store the final, signed form in the customer record with audit trail.

Technical considerations for electronic completion and submission

Use a platform that supports secure attachments, signer authentication, and a tamper-evident audit trail before e-submission.

File types: PDF, DOCX acceptable
Integrations: CRM, document storage, case management
Authentication: Email, SMS, or stronger

Ensure chosen systems meet your institution's regulatory controls for access, encryption, and retention; integrate with screening and case management workflows to avoid manual handoffs and maintain evidentiary trails.

When to collect and refresh a PEP Declaration

Timing varies by risk and policy; these common milestones reflect typical institutional expectations.

Onboarding collection:

Collect at account opening or when initiating a new relationship.

Periodic review:

Review annually or more frequently for high-risk clients.

Update on change:

Request updated declarations promptly after material status changes.

Event-driven refresh:

Trigger updates after material transactions or adverse media hits.

Regulatory requests:

Retain access for examinations and produced records as required.

Common mistakes to avoid when completing the form

Leaving relationship fields vague or incomplete, which prevents reliable linkage between the subject and the PEP and forces manual follow-up
Submitting inconsistent names or missing suffixes, causing failed identity matches during automated screening searches
Failing to attach supporting documents for position or income claims, which increases review time and may trigger account restrictions
Using informal titles instead of official positions, which obscures the public role and complicates jurisdictional risk assessment

Risks and regulatory consequences of incomplete or inaccurate declarations

Regulatory fines: Civil penalties, enforcement actions

Account restrictions: Suspension or account closure

Reputational harm: Public trust and correspondent impacts

Operational delays: Increased manual reviews and onboarding time

Sanctions exposure: Transactions blocked or returned

Legal liability: Potential enforcement and civil suits

eSignature pricing and feature comparison for PEP declaration workflows

Compare per-user pricing and plan characteristics for common eSignature vendors; signNow is listed first for column ordering.

	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	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently asked questions about Financial PEP Declarations

Answers to common questions about scope, signing, notarization, retention, and regulatory handling of declarations.

Need help? Contact support

What qualifies someone as a PEP?
A PEP is an individual who holds or has held a prominent public position, plus immediate family and close associates. Institutions use this classification to apply enhanced due diligence and screening measures.
Can the declaration be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act and UETA for U.S. transactions, provided intent, consent, attribution, and reproducible retention are satisfied.
Is notarization required for validity?
Not usually. Notarization or RON may be required only when an institution's policies or a specific legal process demands additional authentication or when state law requires it.
How often must the declaration be updated?
Update frequency depends on risk and policy; many firms require annual refreshes or prompt updates following material changes in status, office, or relationships.
What happens if a declaration is inaccurate?
Inaccurate or incomplete declarations can lead to regulatory findings, increased review, account restrictions, and potential enforcement actions depending on the severity and intent.
How long should records be kept?
Retain records per applicable law and policy. Common practice is to retain PEP-related documentation for multiple years after account closure; federal and industry rules may require three to seven years or longer.

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