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PEP (Politically Exposed Person) is an individual who holds a senior position in the government or another form of political role. In other terms, it refers to a person who holds a certain kind of institutional or political authority.
The terms "politically exposed person" and "senior foreign political figure," particularly in different parts of the world, are commonly used interchangeably.
Note-You must carry out enhanced due diligence checks (EDD) and demonstrate that you correctly screened PEPs.
A PEP check, also known as a PEP screening, involves checking government lists of politically exposed individuals to verify if the applicant is on the list or not.
For anti-money laundering (AML) compliance procedures to be carried out as effectively as possible, especially in banks and other financial institutions, this screening is essential. The KYC laws mandate the PEP checks.
PEP checks and screening are carried out to identify individuals at high risk and give you the information and alert you need to avoid any financial, legal, or personal harm.
With Complygate's online PEP check, you may expedite your checks for a politically exposed person.
It is essential to screen every person and company swiftly and thoroughly before doing business with them and during your business connection to keep updated PEP screening.
To abide by current KYC regulations and the Anti-Money Laundering Directive, you should take this action. By combining inexpensive, rapid online checks with online monitoring, Complygate makes this task simple. These checks have this functionality built-in, so you do not have to worry about wasting time and money.
PEP is not just for influential people; these people can also be on the PEP list.
These folks are much more likely to have the chance to acquire assets in an illegal manner. This might be anything from a small bribe to massive money laundering, but it could also be because these individuals are targets of bribery and blackmail, by others.
The KYC requirements state that you must be aware of the type of person you are doing business with.
This screening is advised for all positions, but is especially important when filling high-profile, managerial, or executive-level positions where there may be a chance that the candidate would engage in or be exposed to bribery and corruption.
If someone is a PEP does not automatically imply that they are engaging in unethical behaviour and that you should avoid doing business with them; rather, it requires you to be extra cautious in how you manage your business connection.
While the Office of Foreign Assets Control (OFAC) does not have a particular PEP list, they do publish a number of lists, such as Sanctions and Specially Designated Nationals, that may be utilised to adhere to anti-money laundering and anti-terrorist financing laws.
An individual is regarded as a PEP if they hold a prominent government position. However, given their political links and potential for high risk, it is necessary to keep an eye on your client.
There are several internet resources for PEP list screening. At Complygate, we offer tools to scan against these databases and have unique access to extensive PEP databases.
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