PEPs are important when performing KYC - as these individuals are vulnerable to forms of corruption such as bribery. A PEP is a Politically Exposed Person is an individual who has been entrusted with a prominent public function such as being a politician, government official or head of state - or having significant influence with their position within the military or the judicial system. PEPs can be foreign or domestic. Individuals can also be a PEP if they are related to a politically exposed person via marriage or familial associations.