PEP is a person who is authorized to perform prominent public functions in a country and include governors of state, members of Parliament, military officers, senior government and judicial executives and heads of local bodies such as municipal corporations, among others. You could also qualify as a PEP if you are a family member or a close relative of such an individual.

Once you declare yourself as a PEP, financial institutions such as banks and mutual fund houses do additional due diligence while processing your application as a preventive measure to avoid any possible fraud in the future.

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