FCA’s 2025 PEP Guidance refines PEP definitions allowing case-by-case discretion on sign-off and Enhanced Due Diligence (EDD) duration

It emphasises a risk-based, proportionate approach to enhanced due diligence, requiring senior management approval but allowing flexibility in signatories. Firms must promptly update PEP status and ensure clear documentation, training, and compliance oversight, aligning policies with consumer protection principles. This guidance reflects lessons from the FCA’s 2024 PEP review and replaces earlier versions…