One of the biggest challenges facing high growth businesses is how to scale their security and compliance processes. One of the best ways to keep tabs on if your users are engaging in bribery and corruption crimes is through the process of PEP screening. But what is the importance of this kind of screening and how does it work? Read on to find out more.
What are PEPs? PEPs are known as Political Exposed Persons, and they’re typically considered as high-risk customers compared to ordinary civilians. This is because their connections allow them a great opportunity to engage in crimes of corruption or bribery. Businesses and especially financial institutions need to identify these users as PEPs and assess their risk. This is known as PEP screening. Why do PEPs Need to be Identified? Bribery and corruption crimes can have detrimental side effects, and businesses have to control and regulate the transactions of PEPs or they might be on the hook for failure to meet compliance standards. Besides the purely legal implications, crimes such as money laundering, terrorism funding, and more can occur if these things go unregulated. Utilizing PEP Screening In Your Business There isn’t one end all be all standard for PEP screening, therefore there are a variety of different solutions out there for businesses and organizations to utilize. With that being said, there are several agreed upon standards that help businesses to identify PEPs and screen them as effectively as possible. First and foremost, basic data collection to be scanned in a database is necessary. Here is the typical information that needs to be collected from a PEP:
PEP screening needs to be done periodically to be effective, and organizations should seek to have measures in place for identifying new PEPs, scanning existing PEPs, assessing their risk levels, and training their employees to carry out these procedures efficiently. Ultimately, the onus is on the organization to create and optimize their screening process. By being diligent, these types of organization can avoid complications and PEP-related crimes happening under their watch. Read a similar article about ID verification service here at this page.
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Community banks and other smaller financial institutions need to recognize one of today’s most troubling cybersecurity issues—synthetic identity fraud. Traditional identity theft is bad enough, but synthetic identity fraud affords criminals even greater access to money that doesn’t belong to them. As a result, it’s time to learn how this financial crime is carried out, why it’s growing and how your institution can help stop it read more
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AuthorEldon Broady writes about identity verification and business verification service. Archives |