How do I find out if someone is politically exposed?

How do I find out if someone is politically exposed?

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.

Is there a PEP list?

Compliance teams often ask us if there are free PEP lists and the answer is “Not really”. A few organizations do publish free information but almost all lack coverage necessary to meet country regulations.

How do I get a PEP check?

Therefore, the minimum data financial institutions should know for an effective PEP Screening include:

1. Full name.
2. Date of birth or year.
3. Country of political exposure.
4. Gender.
5. Politically exposed roles, appointment dates, and years.
6. The date PEP left its post.

How long is someone considered a PEP?

When Should PEPs Be Declassified? There is no globally accepted process for PEP declassification, and regulations vary by jurisdiction. Most countries impose a statutory time limit from the point at which the customer leaves political office from 12 to 18 months.

What to do if client is a PEP?

If your client is a PEP, you should apply enhanced due diligence measures….Handling PEP clients

1. get senior management approval for the business relationship.
2. take adequate measures to establish the source of wealth and source of funds.
3. closely monitor the business relationship throughout.

What are the three types of politically exposed persons?

According to that guidance, the following people may be considered politically exposed persons in Canada:

• Heads of state.
• Senior politicians.
• Senior political party officials.
• Senior government or judicial officials.
• High-ranking military officials.
• Executives in state-owned corporations and entities.

Are mayors considered PEP?

As such, a mayor is the head of a city, town, village, or rural or metropolitan municipality, regardless of the size of the population. A person ceases to be a domestic PEP 5 years after they have left office.

Why PEP is high risk?

Politically Exposed People (PEPs) are a risk when it comes to money laundering because of their social status. This status means that companies see them as a higher risk customer because of their opportunities to gain assets through unlawful means being greater than usual.

Is PEP screening mandatory?

The Statement affirms that (i) there is no regulatory requirement, and no supervisory expectation, for banks’ Bank Secrecy Act (BSA) / anti-money laundering (“AML”) programs to include “unique, additional due diligence steps” for customers who are PEPs and (ii) there is no regulatory requirement for banks to screen …

What is a politically exposed person?

Global PEP and Sanction Lists Politically Exposed Persons (PEPs) A politically exposed person (PEP) is an individual with a prominent public function posing high-risk in terms of vulnerability to corruption.

Are there any free Pep lists for Politically Exposed Persons?

Compliance should consult with their legal team and/or country Financial Intelligence Unit (FIU) to confirm their obligations around politically exposed persons. Compliance teams often ask us if there are free PEP lists and the answer is “Not really”.

Do financial institutions need a political exposed person list?

Posted August 1, 2016 by Christian Focacci & filed under Research & Investigation. While most financial institutions subscribe to a Political Exposed Person (PEP) list, there are many cases where these lists lack coverage or additional research is required.

Are there any online tools to screen against public Pep lists?

There are many online tools to screen against publicly available PEP lists. At NameScan we cover exclusive access to comprehensive PEP databases and provide tools to screen against these lists. Q. When is a PEP no longer a PEP?