What counts as a PEP under this form?

A PEP is an individual who holds or has held a prominent public function, or a close family member or associate with control over funds. For this declaration include current and recent officeholders, and disclose relationships that may present influence or corruption risk.

When to submit the form?

Provide the declaration during account opening, prior to significant transactions, or when requested by compliance. Many institutions also require periodic refreshes; maintain versioned records to show the date and authority of each submission for audit purposes.

Is an electronic signature valid for this declaration?

Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, electronic signatures are legally enforceable when intent, consent, attribution, and retention are documented. Exceptions like wills or certain court filings may not be e-signable.

Do I need notarization or witnesses for this form?

Not usually. Most PEP declarations are internal compliance documents and do not require notarization. However, state or customer policies may demand notarial acknowledgement or witness signatures for particular transactions; check contract terms or state notary rules before assuming none is needed.

What records should be retained and for how long?

Keep signed declarations, supporting IDs, and verification logs for at least three to six years depending on regulatory obligations. HIPAA requires six years for health records; tax and AML records may require three to six years or longer.

Who should I contact internally about disputed declarations?

Direct disputes or corrections to your organization's compliance officer or the team that requested the declaration. Retain written correspondence and corrected versions; log audit trails and timestamps to demonstrate remediation steps if regulators later review the case.

Electronic Signature
Templates
Miscellaneous
PEP Business Declarations

PEP Business Declarations

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

PEP Business Declarations and Services Agreement

This PEP Business Declarations and Services Agreement (Agreement) is entered into as of Date: by and between Service Provider Name: and Client Name: .

WHEREAS

WHEREAS, the Service Provider provides compliance screening, advisory, and related services regarding the identification, monitoring and mitigation of risks associated with Politically Exposed Persons (PEPs); and

WHEREAS, the Client requires such services and must disclose, certify and update information about beneficial owners, senior officers and any PEP status in accordance with applicable internal policies and regulatory expectations; and

WHEREAS, the parties desire to set forth the terms for the Services and to record declarations concerning PEP status and reporting obligations.

1. Scope of Work

The Service Provider shall perform the services described below in a professional manner consistent with industry standards. The parties acknowledge that the scope may include PEP screening, enhanced due diligence, advisory reports and periodic monitoring.

Detailed Scope of Work

2. Payment Terms

The Client shall pay the Service Provider the fees set forth below in consideration for the Services. All fees are payable in lawful funds of the jurisdiction specified in this Agreement.

Total Fee Payment Schedule / Milestones Payment Terms Late Fee

3. Term and Termination

The Agreement commences on the Start Date below and continues until the End Date unless earlier terminated in accordance with this section.

Start Date: End Date:

Termination Notice Period

Either party may terminate for material breach if the breach is not cured within the notice period. Termination shall not relieve the Client of its obligation to pay for Services performed through the effective date of termination.

4. Confidentiality

Each party shall keep confidential and not disclose to any third party any nonpublic information received from the other party in connection with this Agreement, including PEP status, identity of beneficial owners, due diligence findings, screening results and other sensitive data (Confidential Information). Confidential Information shall not include information that is or becomes public through no fault of the recipient, is rightfully received from a third party without restriction, or is independently developed.

The recipient may disclose Confidential Information to its employees, agents and professional advisors on a need-to-know basis provided such persons are bound by confidentiality obligations at least as protective as those herein. The recipient shall implement reasonable technical and organizational safeguards to protect Confidential Information.

5. PEP DECLARATIONS

For the purposes of this Agreement, a Politically Exposed Person (PEP) means an individual who is or has been entrusted with prominent public functions, including senior government officials, senior politicians, judicial or military officials, senior executives of state-owned enterprises, senior political party officials, and immediate family members or close associates of such persons.

Service Provider Declarations

Service Provider represents and warrants the following (select applicable boxes and provide details where required).

No current beneficial owner, senior officer, manager or controlling person is a PEP. One or more beneficial owners, senior officers, managers or controlling persons are PEPs. If yes, provide details (name, position, country, relationship and nature of exposure)

Client Declarations

The Client represents and warrants the following (select applicable boxes and provide details where required).

No current beneficial owner, senior officer, manager or controlling person is a PEP. One or more beneficial owners, senior officers, managers or controlling persons are PEPs. If yes, provide details (name, position, country, relationship and nature of exposure)

Each party certifies that the information provided in this PEP Declaration section is true, correct and complete to the best of its knowledge. Each party agrees to notify the other party in writing within of any material change in PEP status or beneficial ownership that would affect the accuracy of these declarations.

6. Representations and Warranties

Each party represents and warrants that it has the full power and authority to enter into this Agreement, that the signatory is duly authorized, and that the execution and performance do not violate any applicable law or agreement.

7. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflict of laws principles.

8. Entire Agreement

This Agreement, including any schedules, attachments and the PEP Declarations, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and communications, whether written or oral.

No amendment or modification of this Agreement will be effective unless in writing and signed by authorized representatives of both parties.

9. Notices

Service Provider Notice Address Client Notice Address

Notices under this Agreement shall be in writing and delivered by hand, certified mail, overnight courier or other method agreed in writing, and shall be effective upon receipt.

10. Certification and Acknowledgement

By signing below each party certifies, under penalty of perjury and to the best of its knowledge, that the information concerning PEP status and beneficial ownership provided in this Agreement is true, complete and accurate. Each party further acknowledges that providing false or misleading information may constitute a material breach and may expose the providing party to legal liability.

Service Provider:

By:

Date:

Client:

By:

Date:

What the PEP Business Declarations Is and When It Applies

The PEP Business Declarations is a standardized corporate disclosure used to report whether a company, its senior officers, or beneficial owners are Politically Exposed Persons (PEPs) for compliance, anti‑money laundering (AML), and due diligence purposes. Organizations use this declaration during onboarding, transaction review, or periodic refreshes to document risk, collect signer attestations, and link supporting identity documents. The form clarifies relationships, controlling interests, and public office details so compliance teams can apply enhanced monitoring where statutes or banking policies require it under U.S. AML and KYC frameworks.

Why a Clear Declaration Matters for Compliance

Completing a PEP Business Declarations helps organizations identify elevated risk, satisfy customer due diligence requirements, and maintain audit-ready records for compliance reviews. It provides documented attestations that support risk scoring, reporting, and regulator inquiries under U.S. AML and KYC expectations.

Typical Users and Situations for the Declaration

Many entities use PEP Business Declarations during onboarding, compliance reviews, and cross-border transaction screening processes regularly.

Banks and financial institutions use it for enhanced customer due diligence and transaction monitoring.
Corporations require declarations for board members, major shareholders, and executive-level hires during onboarding.
Legal and compliance teams collect declarations when conducting third-party risk assessments or vendor onboarding.

Smaller businesses and non-profits may use a simplified version but must keep sufficient documentation for audits.

Step-by-Step: Fill Out and Submit the Declaration

Follow these sequential steps to complete and submit a PEP Business Declarations accurately and in compliance with onboarding policies.

01

Prepare: Gather IDs, corporate records, and role documentation before starting.
02

Complete Fields: Enter required fields, use MM/DD/YYYY for dates.
03

Attach Docs: Upload ID, proof of address, and board resolution if required.
04

Verify & Sign: Review entries, sign electronically, and retain the audit trail.

Who Typically Signs or Manages This Form

Compliance Manager

A compliance manager completes the declaration to document due diligence and maintain audit-ready records. They ensure identity verification meets AML/KYC standards, escalate affirmative PEP findings, and coordinate enhanced monitoring or filing with regulators if required by internal policy.

Account Manager

An account manager collects the declaration during client onboarding, explains required fields, and confirms supporting documents. They flag discrepancies to the compliance team and keep a copy in the customer's file to support future reviews and regulator inquiries.

Security and Compliance Controls to Consider

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Certifications: SOC 2 Type II; ISO 27001; PCI DSS

HIPAA: Compliant with BAA required

eSign Laws: ESIGN and UETA compliant

Audit Trail: Timestamp, IP, action history

Accessibility: WCAG 2.0 Level AA

Potential Consequences of Incomplete or Incorrect Declarations

Regulatory Fines: Civil penalties and enforcement actions

Account Restrictions: Transaction holds or closures

Reputational Damage: Loss of clients or partners

Operational Delays: Extended onboarding and reviews

Increased Scrutiny: Enhanced monitoring and reporting

Legal Liability: Potential investigation or litigation

Common Preparation Errors to Avoid

Incomplete identification details delay verification and often trigger manual review requests that lengthen onboarding timelines.
Using informal job titles or abbreviations can cause mismatch with corporate registries and slow automated due diligence checks.
Failing to attach government ID or proof of address is the most common reason institutions request corrected submissions.
Not refreshing declarations periodically can leave records stale and out of compliance with periodic review policies.

Typical Online Workflow for Collecting Declarations

This flow shows how the PEP Business Declarations moves from preparer to compliance reviewer and into the retention archive.

Upload: Sender uploads form and supporting documents.
Assign Fields: Place signature and PEP status fields.
Sign: Signer authenticates and signs electronically.
Store: System saves signed PDF and audit trail.

Essential Elements of a Professional Declaration

A professional PEP Business Declarations includes clear fields, document attachments, auditable signatures, and provisions for periodic refresh and escalation for affirmative findings.

Structured Fields

Form uses discrete fields for names, titles, offices held, dates, and ownership percentages to reduce ambiguity and enable automated parsing by KYC/AML systems and reporting.

Evidence Attachments

Place requirements for uploading government ID, corporate registry extracts, proof of address, and any public office documentation to support affirmative PEP claims and reduce follow-up.

Affirmation Language

Include a signer attestation clause that confirms truthfulness under penalty of perjury or company policy, clarifying legal consequences and the need for accurate disclosure and recordkeeping.

Audit Trail

Capture timestamps, IP addresses, signer emails, and change history so the organization can demonstrate intent, consent, and attribution during regulator examinations and retention evidence for audits.

Version Control

Maintain versioning for each signed iteration and record edits; preserve previous signed copies to show historical disclosures and remediation steps for audits.

Escalation Path

Define internal review levels and triggers for enhanced due diligence when a PEP is disclosed, including required approvals, documentation, and monitoring plans with retention timelines.

Configuring an Online Workflow for Declarations

Configure an online workflow to collect declarations, route to compliance, and archive signed records automatically.

Field	Configuration
Authentication Method	Email link with optional SMS or KBA
Field Types	Text, dropdown, date, file upload
Routing	Send to compliance queue after signature
Retention	Store signed PDF and audit log
Notifications	Email confirmations to parties and compliance

How the PEP Declaration Differs from Other KYC Tools

Compare how PEP Business Declarations differ from standard KYC questionnaires and vendor risk forms to decide which to use.

Criteria	PEP Declaration	KYC Questionnaire
Targeted Purpose	focused pep risk	broad identity risk
Required Evidence	id and office proof	id and address
Frequency	onboarding and refresh	primarily onboarding
Regulatory weight	high aml relevance	standard kyc practice

eSignature Pricing and Feature Snapshot for PEP Workflows

Pricing and feature comparison for common eSignature plans relevant when sending PEP Business Declarations and high-volume compliance forms.

	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	Yes, 7-day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Timing Expectations: When to Request and Refresh Declarations

Key timing expectations for issuing, reviewing, and refreshing PEP Business Declarations are below to meet compliance cycles.

Initial Onboarding:

Request during account opening before transaction approval

Periodic Refresh:

Annually or upon material change in ownership or control

Transaction Trigger:

Before high-value or politically sensitive transactions

Regulatory Requests:

Provide within timeframe specified by regulator or subpoena

Document Retention Review:

Conduct reviews concurrent with record retention audits

Practical Tips to Reduce Errors and Speed Verification

Use these best practices to reduce errors, speed verification, and keep audit trails intact for regulator reviews.

Verify identity and matching records

Before sending the declaration, confirm government ID matches the signer's legal name and date of birth. Cross-check corporate registry records for entity name and ownership percentages to avoid downstream verification exceptions.

Use clear attestation and consequence language

Include explicit attestation wording that signs under penalty of perjury or company policy. Clear consequences reduce disputes and set expectations for accuracy and potential legal exposure.

Standardize supporting documents and formats required

Define accepted ID types, document file formats, and size limits. Use a checklist in the workflow so submitters attach complete evidence and reduce manual follow-up from compliance teams.

Automate routing and retention policies

Route affirmative PEP results automatically to senior compliance for review, capture audit trails, and apply retention schedules. Automation reduces human error and creates consistent evidence for regulators during examinations.

Real-World Examples of Declaration Use

Practical examples show how organizations use PEP Business Declarations in onboarding and risk escalation processes.

Financial Institution

A mid-size bank integrated the PEP Business Declarations into onboarding for high-risk corporate clients during onboarding cycles.

Reduced manual review volume and clarified ownership.
By attaching verified IDs and using electronic signatures with audit trails, the bank shortened verification time, reduced follow-up requests for missing documents, and provided clear evidence during regulator inspections that enhanced due diligence procedures were followed consistently.

Corporate Vendor

A multinational vendor requires PEP declarations from subcontractors before awarding certain contracts to reduce compliance risk.

Improved transparency on ownership and affiliations.
Standardizing the declaration and embedding it into contract templates allowed the vendor to automate collection, flag affirmative responses for legal review, and maintain consistent records for audits across multiple jurisdictions without manual case-by-case handling.

Platform and Integration Considerations for Digital Declarations

Ensure your eSignature platform supports field types, identity verification, and secure storage for PEP declarations.

File Formats: PDF, DOCX, XLSX supported
Integrations: Salesforce, NetSuite, Google Workspace, Box
Authentication: Email link, SMS code, and SSO

Frequently Asked Questions About Completing and Submitting Declarations

Common questions on completion, submission, and legal status of PEP Business Declarations are answered below.

Need help? Contact support

What counts as a PEP under this form?
A PEP is an individual who holds or has held a prominent public function, or a close family member or associate with control over funds. For this declaration include current and recent officeholders, and disclose relationships that may present influence or corruption risk.
When to submit the form?
Provide the declaration during account opening, prior to significant transactions, or when requested by compliance. Many institutions also require periodic refreshes; maintain versioned records to show the date and authority of each submission for audit purposes.
Is an electronic signature valid for this declaration?
Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, electronic signatures are legally enforceable when intent, consent, attribution, and retention are documented. Exceptions like wills or certain court filings may not be e-signable.
Do I need notarization or witnesses for this form?
Not usually. Most PEP declarations are internal compliance documents and do not require notarization. However, state or customer policies may demand notarial acknowledgement or witness signatures for particular transactions; check contract terms or state notary rules before assuming none is needed.
What records should be retained and for how long?
Keep signed declarations, supporting IDs, and verification logs for at least three to six years depending on regulatory obligations. HIPAA requires six years for health records; tax and AML records may require three to six years or longer.
Who should I contact internally about disputed declarations?
Direct disputes or corrections to your organization's compliance officer or the team that requested the declaration. Retain written correspondence and corrected versions; log audit trails and timestamps to demonstrate remediation steps if regulators later review the case.

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