In today’s regulatory environment, Politically Exposed Person (PEP) Screening and Adverse Media Screening are essential for maintaining robust compliance and risk management. PEP screening identifies individuals in influential positions who may pose a higher risk for involvement in bribery, corruption, or other financial crimes. Adverse media screening helps detect negative news or information that could indicate potential risks.
Key Challenges in PEP Screening & Adverse Media Screening
- Keeping track of adverse media reports of your high-profile customers and Politically Exposed Persons (PEPs) among them.
- Controlling the high cost of using commercially available PEP screening databases.
- Ensuring that none of your existing or potential customers is a Terrorism Financier, Fraudster, or Financial Criminal.
- Conducting all the above research at periodic intervals, without manually going through millions of search results, web page after page, looking for adverse media news against each of your customers.
Get a FREE Guide to help you navigate through regulatory guidelines on Politically Exposed Person Check processes to be followed.
KYCsphere’s PEP Screening & Adverse Media Screening Solution
Financial Action Task Force (FATF) defines a Politically Exposed Person (PEP) as an individual who is or has been “entrusted with prominent public functions in a foreign country” such as a head of state; a senior politician; a senior government, judicial or military official; a senior executive of a state-owned corporation; or an important political party official. Even the family members and close associates of such individuals are considered PEPs by this definition. The Wolfsberg Group, the Basel Committee on Banking Supervision and revised recommendations of FATF go a step further and recommend that financial institutions should treat foreign as well as domestic PEPs at par. Currently there are NO officially published Politically Exposed Person (PEP) lists, while commercially available PEP lists vastly differ in their size, quality and most importantly current information on PEPs and their associates.
Unfortunately, local politicians; other government officials of lower ranks; fraudsters & financial criminals; local criminals and terrorism financing networks do not even get included in any of the published official or commercial lists. This makes it difficult to identify them during customer onboarding and screening against watchlists. Nevertheless, they still pose a serious threat to your institution and its image, if unknowingly allowed to establish a business relationship.
KYCsphere’s AI-powered PEP and Adverse Media Screening tool goes beyond where Sanctions/Watchlists/PEP lists left off. The tool allows you to profile the customer and relies on authentic news & other media sources to identify popular as well as lesser-known PEPs, Fraudsters, Financial Criminals, and Terrorism Financiers.
This feature-rich tool can give your institution market agility and regulatory flexibility without any capital expenditure and with the least IT intervention.
See KYCsphere’s Politically Exposed Person Screening tool in action.
Key Benefits of KYCsphere’s PEP Screening & Adverse Media Screening Tool
- Separate the majority of Politically Exposed Persons (PEPs) who are clean individuals from those who are corrupt, on the basis of adverse media reports and bad press.
- Make your institution’s customer acceptance process comprehensive by filtering out lesser-known PEPs, Fraudsters, Criminals and Terrorists.
- On an ongoing basis, investigate your existing customers’ activities in public domain by efficiently covering a vast number of media sources to uncover cases of bribery, corruption, money laundering, financial crime, terrorism financing and other suspicious activities.
- Protect your institution against hefty penalties, major legal costs, loss of business, and above all, damage to your institution’s reputation by establishing a robust KYC program and efficiently managing the high risks of dealing with a Politically Exposed Person (PEP).
Ask our Politically Exposed Person (PEP) Screening Expert to get in touch with you.
FAQs
What is Politically Exposed Person (PEP) screening, and why is it essential?
PEP screening identifies individuals in influential public positions who may pose a higher risk for financial crimes, such as bribery and corruption. By screening for PEPs, institutions reduce the risk of unknowingly engaging with high-risk individuals, protecting their business from reputational and financial harm.
How does KYCsphere’s PEP Screening Tool go beyond standard PEP lists?
KYCsphere’s PEP Screening Tool does not rely on traditional PEP databases. Instead, it uses real-time searches across global media sources, central and state government portals, ministries, and other authoritative sources. This approach helps discover both prominent and lesser-known PEPs, fraudsters, and financial criminals, ensuring a more comprehensive and accurate risk assessment, safeguarding your institution from hidden threats.
What is Adverse Media Screening, and how does it help?
Adverse Media Screening detects negative news or information linked to customers or potential customers. KYCsphere’s tool monitors media reports on bribery, money laundering, and financial crimes, helping institutions identify high-risk individuals before they become a liability.
Can KYCsphere’s tool handle ongoing monitoring of PEPs and adverse media?
Yes, KYCsphere’s solution continually monitors public media sources to detect new risks involving your customers. This ensures ongoing compliance, alerting you to any new adverse activities that may impact your institution’s reputation and legal standing.
Why choose KYCsphere’s PEP & Adverse Media Screening Tool?
KYCsphere’s tool delivers advanced screening capabilities without capital expenditure. It helps institutions minimize legal and reputational risks by effectively identifying and filtering high-risk individuals, enhancing your KYC compliance with minimal IT involvement.