RBS’s definition of a ‘politically exposed person’

Are you a “politically exposed person”? This is what RBS wants to know about its prospective clients, this is the question that led me (when posing as a potential client) to be asked if I was a member of a political party. And when a state-controlled bank like RBS asks people if they are “politically exposed” – a phrase with more than a hint of menace – it is no surprise that it sends shivers down so many spines. What on earth could they mean? What were they trying to get at?

I put some questions about this to RBS earlier today. Here are their replies, and my comments.
 

Q1 – What does RBS understand by the term “Politically Exposed Person (PEPs)” A – A PEP can be defined as an individual who is or has been entrusted with a prominent public function; examples include heads of state, senior politicians, government, judicial or military officials, senior executives of state owned corporations and political party officials.