Can a PEP declaration be signed electronically?

Yes. Electronic signatures are legally binding under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided the signature meets intent, consent, attribution, and record retention requirements.

Do high-risk PEP forms require stronger authentication?

For higher-risk profiles, use multi-factor authentication, identity-proofing, or KBA to strengthen attribution and reduce the chance of fraudulent submissions during onboarding.

Is notarization required for this declaration?

Not typically for internal PEP declarations, but some institutions or counterparty requirements may request notarization or RON; verify state notary and RON rules before requiring notarization.

How long should I keep these records?

Follow your institution's retention policy and regulatory standards: retain during the relationship and for at least 3 years after closure; HIPAA or other rules may require longer retention.

What if the signer’s name differs from ID?

Mismatched names cause screening failures and delays. Require the signer to use the exact legal name on government ID and provide documentation for any name changes.

How do I handle updated information?

Treat material changes as event-driven updates: collect a new declaration, re-run screening, document decisions, and retain both prior and updated versions for audit purposes.

Electronic Signature
Templates
Miscellaneous
Financial Politically Exposed Person Declaration

Financial Politically Exposed Person Declaration

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

Financial Politically Exposed Person Declaration

WHEREAS, the Declarant seeks to establish or continue a financial relationship with the Financial Institution in accordance with applicable anti-corruption, anti-money laundering and customer due diligence obligations; and

WHEREAS, the Financial Institution requires a contemporaneous written declaration from the Declarant identifying any Politically Exposed Person status, relationships to such persons, and material source-of-funds information to satisfy enhanced due diligence requirements; and

WHEREAS, the parties desire to record the Declarant's representations and to set forth related administrative terms and certifications.

Declaration

I, the undersigned Declarant, hereby make the following declaration to the Financial Institution. I certify that the information provided is true, complete and accurate to the best of my knowledge and that I will promptly notify the Financial Institution of any material change to these facts.

Declarant Information

Full Legal Name

Date of Birth:

Nationality:

Residential Address

Identification Type

Identification Number

Politically Exposed Person (PEP) Status

Please indicate the Declarant's PEP status. If any box other than "Not a PEP" is selected, provide full details in the sections below.

Not a Politically Exposed Person (PEP) Domestic PEP (elected or senior official in the Declarant's country) Foreign PEP (elected or senior official in a foreign jurisdiction) Senior Public Official or Senior Executive of State-Owned Entity Close associate or immediate family member of a PEP

Position and Office Details

Official Title / Position Jurisdiction / Country of Office

Start Date:

End Date (if applicable):

Describe Duties, Scope of Authority and Public Functions

Relationship to Other PEPs / Beneficial Ownership

If a close associate or family member, provide name(s) and relationship Beneficial Ownership or Control Interest (if applicable)

Scope of Declaration

This declaration is provided for the sole purpose of enabling the Financial Institution to complete required customer due diligence, enhanced due diligence and regulatory reporting obligations. It does not create any substantive contractual obligations beyond the certifications and permissions set forth herein.

Additional comments or scope limitations

Payment Terms (Administrative Fee)

The Financial Institution may charge an administrative fee for processing enhanced due diligence and ongoing monitoring where permitted by law. The fee, if applicable, is set forth below.

Fee Amount

Payment Schedule / Terms

Late Fee

Term and Termination

This Declaration shall become effective on the Start Date below and shall remain in effect until the End Date below, unless earlier terminated in accordance with the notice provisions set forth herein.

Start Date:

End Date:

Notice Period:

Confidentiality

The Financial Institution shall treat the information provided in this Declaration as confidential and shall not disclose such information except to its advisers, auditors, regulators or as otherwise required by applicable law or regulation. The Declarant acknowledges that the Financial Institution may share relevant information with competent authorities and with correspondent institutions where required by law or for legitimate compliance purposes.

Governing Law

This Declaration shall be governed by and construed in accordance with the laws of without regard to conflict of laws principles.

Entire Agreement

This Declaration, together with any attachments or supplementary documentation executed in connection herewith, constitutes the entire agreement between the parties with respect to the subject matter herein and supersedes all prior and contemporaneous understandings, representations and agreements, whether written or oral.

Certification

By signing below, the Declarant certifies under penalty of perjury and to the best of his or her knowledge that the information provided in this Declaration is true, complete and correct. The Declarant authorizes the Financial Institution to verify any of the information contained herein and to retain copies of identification documents for compliance purposes.

Declarant — Printed Name:

By (Signature):

Date:

Financial Institution — Printed Name:

By (Authorized Rep):

Date:

What the Financial Politically Exposed Person Declaration Is

The Financial Politically Exposed Person Declaration is a compliance statement used by financial institutions and related entities to identify whether an individual is a politically exposed person (PEP) or has close associates who are PEPs. The form records identifying information, the PEP relationship or role, source of funds, and any relevant positions held. Institutions use it to support enhanced due diligence, ongoing monitoring, and regulatory reporting obligations under anti-money laundering (AML) and counter‑terrorist financing (CTF) frameworks.

Why this Declaration Matters for Compliance and Risk Control

Completing a PEP declaration helps institutions apply enhanced due diligence, document source-of-funds inquiries, and create an audit trail required by AML programs. It reduces regulatory risk, supports transaction monitoring, and provides evidence of intent and consent for recordkeeping under ESIGN and applicable state electronic transaction laws.

Who Typically Completes or Reviews This Declaration

Financial institutions, compliance teams, and onboarding staff request or collect PEP declarations during account opening and periodic reviews.

Retail banking compliance teams performing customer due diligence during onboarding and periodic refresh.
Wealth management and private banking officers screening high-net-worth clients for political exposure.
Correspondent banks and transaction monitoring units reviewing counterparty risk and source-of-funds documentation.

External partners such as legal counsel, auditors, and correspondent banks may review completed declarations as part of due diligence.

Key Signers and Reviewers

Compliance Officer

A designated compliance officer or AML analyst typically reviews the declaration, verifies identity and relationships, documents risk findings, and signs or stamps the file as reviewed to support the institution's audit trail and regulatory examinations.

Account Holder

The individual or entity representative completes and signs the declaration, providing name exactly as on government ID, position details, and any disclosures about relatives or known close associates who are politically exposed.

How to Complete the Declaration, Step by Step

Follow these steps to gather the information, complete the form, and ensure the record meets internal and regulatory requirements.

01

Gather documents: Collect ID, proof of address, and employment verification.
02

Answer disclosures: Declare PEP status, relatives, and close associates fully.
03

Attach evidence: Upload supporting documents and explanatory notes where needed.
04

Sign and verify: Sign the form, then have compliance confirm identity and acceptance.

Typical Processing Flow for a PEP Declaration

This is the common routing sequence used by institutions to collect, review, and retain PEP declarations.

Submit form: Customer completes and submits the declaration online or in person.
Identity check: Verify ID and run name screening against sanctions and watchlists.
Compliance review: AML team assesses risk and documents enhanced due diligence if required.
Record retention: Store the signed declaration with evidence and audit trail for retention period.

Recommended Digital Workflow Settings

Configure the e‑workflows to capture necessary evidence, authentication, and audit information for each signed declaration.

Field	Configuration
Identity Verification	Require government ID upload and automated verification where available
Signer Authentication	Use email + SMS OTP or stronger KBA for higher-risk signers
Conditional Fields	Show enhanced-due-diligence questions when PEP is declared
Audit Trail Capture	Record IP, timestamp, and action log for each signer

Digital Signing and System Requirements

Use a platform that captures a tamper-evident audit trail and supports required authentication levels for high-risk financial forms.

Formats supported: PDF, DOCX, and HTML inputs with signed PDF outputs
Integrations: Integrates with CRM and document storage (Salesforce, NetSuite, Box)
Security: TLS in transit and AES-256 at rest

Security and Compliance Controls to Look For

Encryption in transit: TLS 1.2/1.3

Encryption at rest: AES-256

Compliance frameworks: SOC 2 Type II, ISO 27001

Healthcare support: HIPAA (BAA available)

FDA records: 21 CFR Part 11 controls

Accessibility: WCAG 2.0 Level AA

Consequences of Incorrect or Incomplete Declarations

Regulatory fines: Civil penalties under AML rules

Investigations: Enhanced regulator scrutiny and audits

Transaction delays: Onboarding or payments may be blocked

Reputational harm: Public reporting risk

Operational cost: Time spent remediating errors

Record invalidation: Mismatched identity can void evidence

Common Pitfalls to Avoid When Preparing This Declaration

Providing abbreviated or inconsistent names that fail identity matching and produce false positives during screening.
Omitting relationship details for close associates, resulting in insufficient enhanced due diligence for high-risk profiles.
Failing to attach supporting identification, which forces manual verification and delays account opening or transaction processing.
Using weak signer authentication for high-risk customers, weakening auditability and increasing regulatory exposure.

Practical Tips for Accurate and Efficient Completion

Adopt standardized data formats and enforce required attachments to reduce manual reviews and improve screening accuracy.

Standardize name and date formats

Require the full legal name and MM/DD/YYYY birthdate, reducing mismatches in screening databases and speeding automated checks.

Use conditional questioning

Reveal enhanced due diligence fields only when PEP, family, or close-associate status is indicated to streamline lower-risk workflows.

Capture robust audit evidence

Record IP address, timestamps, and authentication method to create defensible records for examinations and internal review.

Retain supporting documents

Store ID copies, employer verification, and written explanations with the declaration to support periodic reviews and investigations.

Essential Elements to Include in a Professional Declaration

A complete declaration should capture identity, role, relationship details, source-of-funds, authentication, and evidence to support AML controls.

Identifier fields

Full legal name, date of birth, and government ID details to enable accurate screening and identity proofing.

Position and office

Current and recent public offices, employer, and jurisdiction to classify the level of political exposure.

Relationship disclosure

Close family members and associates who may present indirect exposure or influence on transactions.

Source of funds

Clear description of funding origin, supporting documents, and any significant recent transfers for high-risk accounts.

Signature capture

Signer name, signature, and date with authentication metadata for legal validity and audit purposes.

Reviewer notes

Compliance findings, risk rating, required mitigations, and reviewer signature to document decisions.

Timing and Periods to Observe

Timely collection and retention keep the institution compliant; follow onboarding and periodic refresh schedules based on risk level.

Initial collection window:

Obtain declaration during account opening or prior to establishing a business relationship.

Periodic refresh:

High-risk profiles: review annually; medium-risk: every 2–3 years; low-risk: as policy defines.

Event-driven update:

Require updated declaration on material changes (new public office, significant transactions).

Retention start date:

Retention typically begins on the date of creation or last effective modification.

Regulatory production:

Make records available promptly during examinations or suspicious activity investigations.

Selected eSignature Vendor Comparison for PEP Declarations

The following summary highlights common plan-level criteria relevant to handling sensitive financial compliance forms; signNow is listed first per vendor comparison conventions.

	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	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	Varies	Varies
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Real-World Examples of Digital Compliance Workflows

Organizations use electronic forms and eSignatures to centralize compliance evidence and speed review cycles.

Optica Ventures — Brian Fitzgibbons

A small investment firm streamlined onboarding with digital declarations to reduce manual steps.

The team saw fewer missing attachments and faster reviewer turnaround.
"The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

BIS — Dan Rotelli

A services company adopted digital forms to capture audit-ready documentation for regulatory requests.

Automated audit trails reduced retrieval time during examinations.
"We felt most comfortable with airSlate SignNow given their SOC 2 certification and strict focus on ESIGN and UETA act compliance."

Frequently Asked Questions and Practical Answers

Answers to common questions about validity, authentication, notarization, and recordkeeping for PEP declarations.

Need help? Contact support

Can a PEP declaration be signed electronically?
Yes. Electronic signatures are legally binding under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided the signature meets intent, consent, attribution, and record retention requirements.
Do high-risk PEP forms require stronger authentication?
For higher-risk profiles, use multi-factor authentication, identity-proofing, or KBA to strengthen attribution and reduce the chance of fraudulent submissions during onboarding.
Is notarization required for this declaration?
Not typically for internal PEP declarations, but some institutions or counterparty requirements may request notarization or RON; verify state notary and RON rules before requiring notarization.
How long should I keep these records?
Follow your institution's retention policy and regulatory standards: retain during the relationship and for at least 3 years after closure; HIPAA or other rules may require longer retention.
What if the signer’s name differs from ID?
Mismatched names cause screening failures and delays. Require the signer to use the exact legal name on government ID and provide documentation for any name changes.
How do I handle updated information?
Treat material changes as event-driven updates: collect a new declaration, re-run screening, document decisions, and retain both prior and updated versions for audit purposes.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now