PEPs & Sanctions Checks
W2’s platform unifies the best available global sanctions, Politically Exposed Persons (PEP), global watchlist and adverse media data into a single consumable package.
Data sets are updated daily to ensure you have the most up to date information and can not only be used for initial onboarding and ongoing monitoring purposes, but also at point of payment transactions.
Secure the reputation of your business whilst offering legitimate customers a smooth onboarding journey.
Hundreds Of Satisfied Clients
What is a PEP?
A PEP is a politically exposed person. They are individuals who hold or have held a prominent or public position or function, either domestically or abroad. Example includes heads of state, government officials, judges and military officers. It is also important to verify the identity of those associated with PEPs including family members and close associates. Not only are PEPs themselves at a higher risk of being subject or involved in money laundering and other financial crimes, but those close to them could also be involved.
What is a Sanction?
A Sanction is a measure imposed by government, international organisations, or other bodies to restrict trade or financial transactions with certain individuals, organisations, or countries. Sanctions may be imposed for several reasons, including terrorism, human rights abuses, or weapons proliferation. Compliance with sanctions is crucial to prevent unwittingly supporting prohibited activities.
Sanctions checking has become a critical step at the point of onboarding and through re-screening. Not only does sanctions checking form part of compliance requirements for regulated businesses, but it also protects the reputation of an organisation and provides a clearer view on their customer base.
Simplify Your Vendor Management
With many different sources of PEPs, sanctioned individuals, adverse media and more, the process of analysing them all can become a tiresome and costly process for your business.
W2’s orchestration platform enables you to aggregate all of these sources into a single access point. We offer 3 different levels of checks, depending on detail required for risk based approach.
PEPs and Sanctions checks can then be added to a custom onboarding journey which is crafted to identity any PEPs or Sanctions whilst ensuring you efficiently onboard the right type of customers.
Heads of state and high ranking Government figures around the world.
All of the above plus:
- Regional, current and former PEPs.
- Family members of PEPs.
- Close associates of PEPs.
- FATF (Financial Action Task Force) defined PEP categories.
All of the above plus:
- A much broader spectrum of civil servants, political party officials, senior members of the police force, city mayors, national NGO officials, political pressure and labour group officials.
- Global law enforcement wanted lists.
- Regulatory enforcement actions.
- Global adverse media.
- Global sanctions lists.
Frequently Asked Questions
PEP and sanctions checks are necessary for AML compliance. Companies must ensure that they do not conduct business with individuals or entities that are on a sanctions list or are considered high-risk PEPs. Failure to conduct these checks can result in hefty fines, reputational damage, and legal consequences.
Sanctions lists are provided by governments, international organisations, and other bodies to identify what they believe to be a sanctioned individual, entity, or country. Within the list there is an array of information on the sanctioned individual or entity including primary name and variations, aliases, position, place of birth, which sanctions have been imposed, and reasons for the sanction.
- O.F.A.C (Office of Foreign Assets Control)
- US Treasury Department
- French Asset Freeze List
- HMT (Her Majesty’s Treasury Department – UK)
- European Union
- Government of Netherlands National Sanction List Terrorism
- United Nations
- Office of the Superintendent of Financial Institutions
PEPs are at a higher risk of being involved in money laundering or other financial crimes because of their access to public resources and the potential for corruption. Therefore, it is essential to conduct due diligence on PEPs to ensure that they are not involved in legal activities.
Not only are PEPs themselves at a higher risk of being subject or involved in money laundering and other financial crimes but those close to them could also be involved.
A PEP is no longer classified as an ‘active Politically Exposed Person’ once they are no longer in their role of, for example, ahead of state, government official, judge, or military officer. However, PEP checks often include the ability to check to Ex-PEPs as those who have been politically exposed are still at risk of being involved in money laundering or financial crime even after they conclude their official active status.