PEPs are politicians, bureaucrats, executives of international organizations, major foundations, associations and trade unions who have come to an important position in society. Also, individuals in the family of PEPs are classified as PEP. PEPs are classified by the Financial Action Task Force (FATF) based on their risk levels.
Corruption is a major problem in the world. Every year, a global bribe of $ 1 trillion is given. It is estimated that the amount of corruption in the world is $ 2.6 trillion. So, PEPs or Politically Exposed Persons have to be seen as high risk by financial institutions due to their potential to get involved in bribery and corruption. Of course, financial institutions are not forbidden to open accounts for PEPs. AML regulators have required financial institutions to detect PEPs due to high risks.
Some basis of AML regulations are "Know Your Customer (KYC)", "Customer Due Diligence (CDD)" and "Enhanced Due Diligence (EDD)" procedures. These procedures are applied during the customer onboarding process and the customer's risk level is determined. Detection of PEPs is also included in the CDD procedures. Therefore, companies have to perform PEP screening during the customer onboarding process according to AML regulations.
Our AML Name Screening software provides PEP screening service. Sanction Scanner database contains PEP data from more than two hundred countries.
With our AML Name Screening software, companies can perform PEP scanning in seconds during customer onboarding and customer monitoring processes.
Companies can easily detect PEPs with web, API or batch search options.
FATF has classified PEPs according to their positions and risks. Therefore, companies must perform PEP scans based on classified PEP data. Sanction Scanner has classified the PEP data according to the FATF definition. Also all the data of Sanction Scanner is real time.
