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The guidance from the Joint Money Laundering Steering Group identifies 'politically exposed persons' (PEPs) as a greater money laundering risk primarily because their positions of power and influence can create opportunities for corruption. PEPs often have greater access to resources and decision-making processes, which can make them more susceptible to engaging in corrupt practices or being exploited for illicit financial activities. This heightened risk arises from the potential for PEPs to be involved in bribery, embezzlement, or other forms of corruption that can lead to the misappropriation of public funds.

Additionally, the societal and economic implications of corruption involving PEPs can be significant, as it undermines public trust in government institutions and contributes to broader issues of financial crime. Therefore, the guidance emphasizes the need for enhanced scrutiny and due diligence when dealing with PEPs, as they may pose a higher risk of laundering proceeds from corrupt activities compared to ordinary individuals.