What is a PEP in AML compliance?

A PEP (Politically Exposed Person) is someone in or formerly in a prominent public role—like a politician, judge, or military leader—posing higher financial crime risk due to access to public funds or influence.

It’s the process of screening customer information against global PEP databases to identify high-risk individuals and apply Enhanced Due Diligence (EDD) when necessary.

Why is PEP screening important for financial institutions?

It helps detect corruption-related risk early, protects reputation, prevents regulatory violations, and ensures compliance with global AML laws.

What is the difference between a PEP and a sanctioned person?

A PEP is not legally restricted but requires enhanced monitoring due to their public role. A sanctioned person is officially listed and prohibited from financial activity.

Are relatives and associates of PEPs considered risky?

Yes. Spouses, children, business partners, and close associates are flagged as RCAs (Relatives and Close Associates) and require equal scrutiny.

What types of PEPs are there?

• Domestic PEPs: Officials in the same country • Foreign PEPs: Officials in other countries • International PEPs: UN, IMF, etc. • RCAs: Family and associates linked to any PEP type

Is PEP screening mandatory?

Yes. FATF, EU AMLD, and FinCEN require screening for PEPs at onboarding and throughout the customer lifecycle.

How often should PEP screening be conducted?

At onboarding and on an ongoing basis—especially for high-risk or long-term clients. Sanction Scanner supports continuous screening and auto-updates.

Can PEP screening be automated?

Absolutely. Our platform uses smart fuzzy matching, real-time alerts, and multi-language data sources to detect PEPs efficiently and reduce false positives.

What are the consequences of failing to detect a PEP?

Institutions face regulatory fines, reputational damage, and loss of trust—especially if the PEP is involved in corruption or financial misconduct.

What sources does Sanction Scanner use for PEP screening?

We use verified global PEP lists, regional databases, international organizations, and structured government disclosures—updated daily.

Can institutions define different workflows for PEPs?

Yes. You can configure risk levels, approval steps, and escalation protocols specifically for PEPs and RCAs in our case management system.

Does Sanction Scanner support RCA-specific alerts?

Yes. Our engine highlights RCA relationships and flags indirect exposure, helping compliance teams map broader risk networks.

Is PEP status permanent?

No. While monitoring timelines vary, FATF recommends EDD for a set number of years after the PEP leaves office (e.g., 12–18 months).

Can PEP screening integrate with onboarding platforms?

Yes. Our API-first design allows seamless integration into KYC flows, CRMs, or onboarding portals—triggering instant risk checks.

Does Sanction Scanner log all PEP match decisions for audit purposes?

Yes. Every match—including false positives, escalations, approvals, or rejections—is recorded with full metadata and decision rationale. This audit-ready log helps institutions demonstrate regulatory compliance during inspections or internal reviews.

PEP List Screening & Monitoring

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Detecting Politically Exposed Person (PEP)

PEPs have to be seen as high risk by financial institutions due to their potential to engage in bribery and corruption. Financial institutions are not forbidden to open accounts for PEPs, but AML regulators have financial institutions necessary to detect PEPs due to high risks. You can easily detect PEPs with Sanction Scanner solutions.

+3000

DATA POINTS CHECKED

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COUNTRIES COVERED

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ALWAYS REAL-TIME DATA

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Automating PEP Screening Process

Automate PEP Screening Process using our database that contains PEP Data from 220+ countries. You can perform PEP Screening in seconds during customer onboarding and monitoring processes using API, web, or batch search options.

Classified Real-Time PEP Data

FATF classified PEPs according to their risk levels. Therefore, companies must perform PEP scans based on classified PEP data to meet AML Compliance. You can scan PEPs based on their risk levels using our products that run with real-time data.