Politically Exposed Persons (PEP)
As a result of international standards and directives, there are now strict requirements about increased controls on customer identity. Politically exposed persons (PEPs), such as heads of state or government, politicians, government and legal officials and high-ranking military officers, who make use of their positions and business contacts in order to make money unlawfully out of their country, are taking their country’s capital and jeopardizing the development of its economy. One important element in the duty of care of a credit institution is to recognize the identity of politically exposed persons, their family members and business partners. Managing PEPs requires extensive databases which, unlike the sanctions lists, are not readily available. PEP databases describing national and international politically exposed persons are available from a large number of commercial data providers. SironPEP provides the interfaces for the databases of WorldCompliance, Factiva and WorldCheck.
PEP-screening with SironPEP
SironPEP compares the customer data from the institution’s systems with the PEP databases from various suppliers of PEP data. A match between a customer’s name and a PEP will always trigger a hit in the screening process, although it is not necessarily the same person (“false positive“). Primary identification features such as date and place of birth, passport or national ID number, and secondary identifying features such as address or passport photograph serve to optimize the comparison process and so reduce the number of “false positives“, and the need for manual checking. If a match is found when the data is compared, it is important to assess the quality of the information that matches, and here SironPEP offers direct access to all the entries in the PEP database.
SironPEP at a glance
- Identification of politically exposed persons
- Different types of customer status for the generating of risk categories and indications for the research system (potential PEP, PEP, No PEP)
- High-performance algorithm for the alignment of names and data
- Individual settings for the accuracy of the checking process to exclude "False Positives"
- Integration within SironAML and/or existing CRM or research systems with less time and effort
- Dynamic, risk-based adjustment of the Know Your Customer (KYC) profiles
- Audit-proof documentation of the processing