What happens to your bank when you become a politically exposed person?

[Trehre]

Theoretically, what would happen if you became a PEP?

- Do you get debanked from private banks soon after?
- What about your demat accounts?
- Would you have issues securing a loan?
- Do you automatically become a PEP if you get married to someone who runs for office?

 

[hellowo₹ld]

Basically it is for risk criteria, not for removing them from banking services.

When its Police, PEP, Lawer etc. bank consider has high risk/delicate category and deal with them accordingly, just their TnCs might be little different than regular to avoid future court issues. Also they monitor funds different way to avoid source funds issue and take very conservative approach when providing loans.

Otherthan that nothing changed.

 

[komal]

Basically it is for risk criteria, not to allow them utilize their banking services. When its Police, PEP, Lawer etc. bank consider has high risk/delicate category and deal with them accordingly, just their TnCs might be little different than regular to avoid future court issues. Otherthan that nothing changed.

Why police , lawyers , politicians are treated differently?

 

[HumorSimpson]

Why police , lawyers , politicians are treated differently?

The power of knowledge of law.


Still in many places people don't rent their houses for lawyers.

 

[hellowo₹ld]

Why police , lawyers , politicians are treated differently?

the one directly related to court/justice system. A lawyer may find flaw in line 32 of page 64 in clause with line 16 of page 17 in that TnCs to avoid paying loan, which a regular citizen have very low chances to discover or even understand it. A PEPs may get funds from several sources.

-- some general cases, not applicable for all, just banks behave cautiously with them.

 

[komal]

the one directly related to court/justice system. A lawyer may find flaw in line 32 of page 64 in clause with line 16 of page 17 in that TnCs to avoid paying loan, which a regular citizen have very low chances to discover or even understand it. A PEPs may get funds from several sources.

-- some general cases, not applicable for all, just banks behave cautiously with them.

Oh I heard same regarding issuance of credit cards too , govt officials have less chance of approval