In accordance with global Anti-Money Laundering laws, Kraken has a regulatory obligation to determine if the applicant/client of an individual or corporate account or an ultimate beneficial owner of an account is a Politically Exposed Person (PEP). While your region may have its own nuances, Kraken is aligned with the Financial Action Task Force’s (FATF) characterization of a PEP as an individual who is or has been entrusted with a prominent public function.
Please read the definitions of a PEP and Relative or Close Associate (RCA) of a PEP below carefully in order to make the relevant Self-Declaration selection.
A Politically Exposed Person (PEP) is defined as an individual that holds or has held prominent public functions, either foreign or domestic, within a country or international organization. A prominent public function may include:
Heads of state: Refers to the chief public representative of a country, ceremonial figurehead or head of government such as a president, chancellor, premier, prime minister, monarch
Government ministers, cabinet members or equivalent politicians: Refers to first-level executives who advise the government on policy matters, oversee the interpretation, formulation and implementation of legislation and government policies such as a cabinet member, secretary, or minister
Senior government executives: Refers to senior government officials or executives who manage a specific region or municipality or a specific sector of public administration that may also oversee other government agencies and organizations as part of a political portfolio. This may include a senior, regional, municipal official or commissioner
Diplomatic officials: Refers to a high-ranking diplomat who represents a state and is usually assigned to another sovereign state or to an international organization as the resident representative such as an ambassador
Leader or senior officials of a political party: Refers to an official representative, senior official, or primary spokesperson of a political party
Judicial Officials: Refers to senior member of a court charged with making decisions about legal matters such as a magistrate, justice, chief judge
Military Officials: Refers to a commissioned officer that is a distinguished, senior member of the military such as a Chief of Staff, General, Lieutenant General, Major General
Central bank governors: Refers to a member of the Board of Governors of a Central Bank changed with implementing the government’s monetary policy and the issuing of its currency
Board members or senior executives of an intergovernmental organization or stated-owned corporation: Refers to executive suite or board of directors members charged with the management of an international or stated owned enterprise, either wholly or partially owned by a government
The definition and legislative requirements of a PEP extends to the Relatives and Close Associates of a PEP. A Relative or Close Associate (RCA) is an individual with a social or professional connection to a PEP. RCAs may include:
Spouses, partners, parents of children: Either through birth or marriage (current or past). Refers to legal or common-law spouses, ex-spouses, fiances, boyfriend, girlfriend
Parents: Either through birth, adoption or marriage (current or past). Refers to father, mother, step-father, step-mother
Children: Either through birth, adoption or marriage (current or past)
Siblings: Either through birth, adoption, or marriage (current or past). Refers to brother, sister, step-brother, step-sister, half- brother, half-sister
Uncles, aunts, cousins: Intermediate family members either through birth, adoption or marriage (current or past). Uncles or aunts refers to a sibling of your parent or a person married (legal or common-law) to your parent’s sibling. Cousins refers to the children parent's siblings.
Close friends: Refers to any individual publicly known or actually known to be a close personal associate and/or confidant
Legal advisors: Refers to any individual publicly known or actually known to be a close professional associate who provides advice, guidance, and support related to a range of legal issues or concerns.
Individuals with legal arrangements or close business or political relationships with PEP: Refers to any individual known to be a close political associate or professional associate engaged in a relationship by means of contract or an exchange of promises in business (either oral or written) which may include however not limited to; Business Partners, Business Managers, Advisors or Consultants, Accountants, Property Managers or Agents.
If you’re a PEP (or have been a PEP) or RCA of a PEP (or an individual who has been a PEP) you may need to submit at least one supporting documents based on the criteria below:
- 1
Financial Statements demonstrating Source of Wealth:
Source of Wealth: refers to the origin of your entire body of wealth or the means of overall accumulation of wealth overtime (e.g. an accumulation of salary, inheritance, crypto investments, etc.).
a) Statements indicating balances held in digital or fiat currency such as records of on-chain cryptocurrency holdings, bank statements, brokerage statements and other statements of securities holdings, certifications of deposit, tax assessments and appraisal reports issued by qualifying independent third parties such as a registered broker dealer, registered investment advisor, licensed attorney in good standing, or certified public accountant.
b) Must include your name and dated within the prior three month period of this declaration.
c) Cryptocurrency wallets used for this submission may require a cryptographic signature demonstrating ownership. - 2
Asset Statements demonstrating Source of Funds:
Source of Funds: refers to the origin and means of initial and ongoing deposits (i.e. fiat and/or crypto) into the account via transfers between Kraken and your other financial institutions through funding rail options (e.g. the source could be salary or savings from a bank account) that have occurred to date or you intend to use in the future.
a) Statements from bank, digital exchange, retirement, investment account or the equivalent that displays transfers between Kraken and other financial institutions.
b) Must include your name, the institution’s company letterhead and dated within the prior three month period of this declaration.
c) Cryptocurrency wallets used for this submission may require a cryptographic signature demonstrating ownership.
If one supporting document demonstrates both your body of wealth and intended/actual interaction between Kraken and your other financial institutions, then a second document is not required.
Please note that Kraken has a regulatory obligation to take reasonable measures to identify Proof of Source of Wealth and Proof of Source of Funds documentation in conjunction with these cases.
Please complete the relevant Self-Declaration below: