Council Directive 2018/822/EU, known as DAC6, is the EU Directive on Cross-Border Tax Arrangements with the main purpose to strengthen tax transparency and prevent potentially aggressive tax planning.

Financial Institution should consider a number of factors in order to define the risk level each PEP carries.

Although all PEPs are susceptible to illicit activity and money laundering, some PEPs bear higher risk than others and may require additional analysis.