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Risk Management of Politically Exposed Persons (PEPs) in Iran's Financial System: Frameworks, Challenges, and Localized Solutions
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Farshad Heidari *1   , Abbas Toloie , Mahdi Madanchi |
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Abstract: (17 Views) |
The “Statement on the Second Step of the Islamic Revolution” and recent regulatory developments have underscored the heightened necessity for establishing robust systems for the identification and effective risk management of political risk, particularly with respect to Politically Exposed Persons (PEPs) in Iran. This article, adopting a review method and critical analysis of the literature, elucidates the theoretical concepts of risk, political risk, and the position of (PEPs). It further presents global risk management frameworks (FATF, Basel, OECD), critically examines the mismatch between these frameworks and Iran’s politico-economic structure, and addresses the specific challenge concerning “the divergence in the definition of terrorism and the legitimacy of resistance from the perspectives of Iran and international organizations.” Ultimately, the paper proposes strategic recommendations and a conceptual model for the identification, prevention, and control of (PEPs) risk in Iran’s financial system. The findings indicate that effective management of this risk necessitates advanced identification systems, regulatory transparency, and institutional capacity-building. Full realization of these objectives depends on resolving international legal and political issues and strengthening the independence of financial institutions.
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Article number: 2 |
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Type of Study: Empirical Study |
Subject:
Macroeconomics: Consumption, Saving, Production, Employment, and Investment (E2)
Received: 2025/08/12 | Accepted: 2025/09/16 | Published: 2025/09/23
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