FATF divides PEPs into three distinct categories, Foreign, Domestic and International, but we believe its important to highlight several sub categories: Political Party Official, State Owned Company Executives and Relatives and Close Associates.
Foreign
Individuals entrusted with prominent public functions by a foreign country, such as Heads of State or government, senior politicians, senior government, judicial or military officials, senior executives of state-owned corporations, and important political parties officials.
Domestic
Individuals entrusted domestically with prominent public functions, such as Heads of State or government, senior politicians, senior government, judicial or military officials, senior executives of state-owned corporations, and important political party officials.
International organization
Persons who are or have been entrusted with a prominent function by an international organization refer to members of senior management or individuals who have been entrusted with equivalent functions, i.e., directors, deputy directors, and members of the board or equivalent functions.
Political Party Officials
Individuals appointed or elected to influential roles in political parties, giving them influence over elections, candidate selection and large election advertising and organization budgets.
State Owned Company Executives
In many countries, governments own large stakes or even majorities in corporations, creating conflicts of interest where executives have control not only over a corporation's spending and operations, but also over disbursal of government funds to that same corporation.
Relatives and Close Associates
Relatives and Close Associates (RCAs) carry over the risk from the PEP, largely because these are the individuals to whom PEPs turn to when they are interested in hiding illicit funds. This generally means spouses, unmarried partners, siblings, parents, children and close friends, generally ones in a profession unrelated to the PEPs occupation.