Effective tools for PEP screening and sanctions checks
For companies operating in a complex regulatory environment, compliance with anti-money laundering (AML) regulations is a critical priority. A key aspect of this work involves identifying PEPs (Politically Exposed Persons) and ensuring adherence to sanctions. With increasing demands for enhanced customer due diligence, businesses need efficient and reliable tools to handle PEP screening and sanctions checks effectively.
What is a PEP?
A Politically Exposed Person is an individual who holds a prominent public function, along with their close associates or family members. Due to their positions, these individuals are at a higher risk of being involved in corruption or money laundering. It is therefore vital for companies to identify and monitor changes related to PEPs closely to avoid legal consequences and other risks.
The importance of a PEP register
A PEP register is an essential resource for meeting compliance requirements. It provides up-to-date and verified lists of PEP individuals and their related connections (RCA), enabling businesses to conduct thorough checks during onboarding and ongoing monitoring. A robust and reliable PEP register offers the following benefits:
Efficient searches: Quick and seamless identification of individuals classified as PEPs.
Improved quality: Reliable and accurate verification of customer and partner information against a trusted source.
Streamlined PEP monitoring: Ensure AML compliance and minimise operational risks through automation.
Why sanctions checks are critical
Sanctions imposed by regulatory authorities aim to prevent high-risk individuals and organisations from exploiting financial systems for illegal purposes. Rigorous and consistent sanctions screening is therefore crucial to avoid inadvertent legal breaches. To achieve this, businesses should implement processes that include:
Regular updates from global sanctions lists.
Integration with real-time tools for immediate alerts.
Comprehensive documentation of all actions taken as part of due diligence.
