AML, PEPs & Sanction Checks
Why should you embed AML, PEPs and Sanction checks in pre-employment screening?
The Anti-Money Laundering (AML) regulations are governed by 4 Acts: The Proceeds of Crime Act, The Serious Organised Crime and Police Act, The Terrorist Act and the Money Laundering Regulations. Failure to report suspicious activity can carry a criminal sentence and lead to substantial fines from the relevant regulatory body.
Also, standard AML checks do not screen clients against Her Majesty’s Treasury (HMT) list, while PEPs are not necessarily included in financial sanction checks. FCA registered companies are required to run such checks as day-to-day due diligence, not only to reduce their own company’s risk exposure, but to also comply with the current guidelines and stay within the law. It does not matter whether your company is regulated by FCA/PRA or not. However, it will be prudent to have these checks in place as a part of the Pre-employment screening to protect your business and hire the right talent.
With a 30-40% increase every year in the PEPs list alone, it is important to screen new and existing employees to make sure they are compliant with the AML guidelines.