With AML for GoProposal, our risk averse approach is designed to safeguard your interests and protect you from potential risks. As such, you might find your client is flagged as a Politically Exposed Person (PEP) on their ID check report, without being as such.
This help article aims to explain the importance of PEP checks and how they contribute to maintaining the highest level of accuracy in your ID checks.
Why do PEP flags appear on your Report?
Our comprehensive PEP screening process is a proactive measure taken to identify any individuals who might have prominent positions in the government or significant political influence. Known as PEPs, these individuals are at a higher risk of involvement in illicit activities such as money laundering, bribery, or corruption.
To ensure thoroughness and accuracy, we cast a wide net, flagging potential matches, even those with common names. While this may result in multiple PEP flags on your report, it is crucial in our risk averse approach to providing you with the most comprehensive screening
The Importance of Reviewing the Report:
While PEP flags are essential for raising awareness, they do not imply guilt or wrongdoing on the part of your client. Instead, we encourage you to take the time to review the report carefully. This step is vital in distinguishing between actual associations and false positives.
How to evaluate PEP flags:
Location Comparison: Compare the location of the flagged individual with that of your client. If they are in different regions or countries, and this is clearly visible on their ID, it is highly likely that they are not the same person.
Description Analysis: Pay close attention to the description of the PEP in question. If the individual's attributes or affiliations differ significantly from those of your client, it is a strong indicator of a false positive.
Additional Information: Look for any supplementary details provided in the report. Different birthdates, occupation history, or any other distinctive information can help differentiate between the flagged person and your client.
What if my client is a PEP?
If, during the PEP screening process, you discover that your client is indeed a Politically Exposed Person (PEP), there's no need to panic. Being a PEP does not automatically imply any wrongdoing. Instead, it merely indicates that your client holds a prominent position or has political influence.
As a responsible business, it's essential to exercise additional due diligence and implement enhanced monitoring procedures to ensure transparency and compliance with relevant regulations.
Review Policies: Review your company's policies and procedures for dealing with PEP clients to understand how to deal with them.
Consult Experts: Consult legal and compliance experts to ensure you meet all necessary requirements for mitigating risk with a PEP.
Mitigate: Document in your client Risk Assessment how you intend to deal with any Politically Exposed Clients. For example, any enhanced due diligence measures you intend to take.
By addressing the situation proactively, you can continue to conduct business confidently with the client.
I need some support
If you're in need of some technical support from the GoProposal team, please reach out to us via the chat box below.
If you're in need of some support with the Thirdfort app, or have a query about the results of a check, please reach out to Thirdfort using one of the below channels.
Email - support@thirdfort.com
Phone - 0161 768 0083
Thirdfort Support Hub