Identifying politically exposed persons (PEPs) under The Federal Council is crucial for maintaining the integrity of financial systems and preventing corruption. PEPs often hold significant power and influence, making them susceptible to involvement in illicit activities such as bribery or embezzlement. by recognizing these individuals, institutions can implement enhanced due diligence measures, mitigate risks associated with money laundering, and ensure compliance with regulatory requirements. this proactive approach helps protect not only the institution but also the broader economy from financial crime.