PEP-SCREENING

Check on exposed political leaders — heightened corruption risk.

Definition

FATF Recommendation 12 categorisation: Foreign PEP, Domestic PEP, IO PEP (International Organisation). Includes spouses, parents, children, business associates. Enhanced Due Diligence required (source of funds check, senior management approval). Commercial lists: World-Check Refinitiv, Dow Jones Risk & Compliance, ComplyAdvantage. Regulated by EU AMLD6, US Bank Secrecy Act.

Origin

Concept formalised by FATF in 2003. Recommendation 12 updated 2012.

Example in context

Identifying an African minister son as a PEP during wealth management client onboarding.

Related terms

• KYC — parent framework.
• Sanctions screening — other KYC component.