What is PEP and sanction list screening?

Regulatory requirements require new and existing customers to be checked against sanctions lists, for example to identify criminals and terrorists. Politically exposed persons (PEPs) have to be identified and treated with particular care.

How do you check if someone is a PEP?

Businesses are not required to perform extensive investigations to determine if an individual is a PEP. Rather, this can be achieved via a simple AML check which includes a screen against a register of publicly known individuals with public functions, their associates and close family.

How does a PEP check work?

PEP screening is an important aspect of Anti-Money Laundering and Know Your Customer (KYC) regulation. It involves validating a customer’s identity to determine if they are a PEP – a politically exposed person.

How are PEPs identified?

A politically exposed person (PEP) is defined by the Financial Action Task Force (FATF) as an individual who is or has been entrusted with a prominent public function.

What is PEP status?

Politically exposed persons (PEPs) status does not predict criminal behavior, but the additional risk exposure it brings means that financial institutions must apply additional AML/CFT measures when establishing a business relationship.

What is a PEP search?

PEP stands for Politically Exposed Person, which typically relates to an individual who holds a prominent public position or function. Instead, it means that someone who shares your name is a PEP and, because of this, you might be subject to an extra identity check whenever you apply for credit.

What is PEP and why we need to check their profile?

Political Exposed Persons (PEPs) are defined as high-risk customers who have greater opportunities than ordinary citizens to acquire assets through illegal means such as taking bribes and money laundering. PEPs have to be identified and screened in financial institutions because of the risks they have.