PEP Screening Guide

Screening is integral to the customer onboarding process and AML Compliance framework. Screening is performed to identify whether any customer or business associate is sanctioned, has a criminal history, or is politically exposed (PEP). The idea to screen the PEP is because these people influence the country’s politics and economy. Further, being in a political position makes them more vulnerable to financial crimes like bribery or corruption. PEP screening has been made mandatory to check on these financial crimes, as such persons are subject to Enhanced Due Diligence, where the details around the source of funds are sought.