PEPs and Sanctions checks – what mistakes are firms making?

The changing face of client due diligence following the introduction of the 4th Money Laundering Directive has certainly given rise to new myths and, unfortunately, incorrect assumptions about the responsibilities that firms have. One example of this centres around the AML legislation’s change to approaching Politically Exposed Persons (PEPs)/ Sanctions and the increased scrutiny that is now required.

The 2017 regulations have widened the scope of who exactly is considered a PEP – where once only foreign PEPs were thought to represent an increased risk of money laundering, domestic UK PEPs are now required to be scrutinised, including their immediate family and close associates. Since this change, it has in some instances been assumed that, while a firm may now have to look into domestic clients too, they are not required to do a PEPs and Sanctions check if they have met said client in person. However, this is absolutely not the case: regulations apply to all clients, not just those that have not been met face-to-face.

This requirement might appear to be another form of regulation that will slow down your processes for clients, but it doesn’t have to be. e-Verification is a quick and easy way to verify all the information that your clients have provided. In addition, monitoring systems are a straightforward solution to implement ongoing risk assessment/due diligence for those clients that are politically exposed or have been found to be higher risk using internal risk management systems.

Our monitoring system provides up-to-date information on:

•  Insolvency

•  Adverse publicity (worldwide)

•  Registered death (UK only)

•  PEP (Worldwide)

•  Current sanctions updates (Worldwide)

•  Financial regulator changes (Worldwide)

•  Law enforcement notices (Worldwide)

•  Disqualified directorships

•  Charities Commission (UK only) 

Data available with Jordans ID and Fraud services include:

• UK Credit Header Data

• UK Register

• UK Mortality

• UK Passport/Driving Licence

• International Passport/ EU Identity Card

• International PEP

• International Sanctions

• UK Bank Account Validation

• UK Bank Account Verification

To find out more or to request a demonstration of our ID & AML checks, please contact us on 0117 918 1265.


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