Patrick Ward 
Business Definition of PEP Screening
The term PEP Screening refers to the process of identifying and assessing “Politically Exposed Persons” (PEPs) within a business context. PEPs are individuals who hold or have held prominent public positions, such as heads of state, senior politicians, judicial officials, or high-ranking military officers, and their close associates. PEP Screening is typically conducted by financial institutions, legal entities, and other organizations to prevent and detect potential involvement in corruption, money laundering, or other illicit activities.
What Does “PEP Screening” Mean?
PEP Screening is crucial for businesses aiming to comply with anti-money laundering (AML) regulations and maintain robust due diligence practices. It involves scrutinizing individuals and entities to ensure they do not pose a higher risk due to their political exposure, which could make them more susceptible to engaging in financial misconduct.
Is PEP Screening the Same as General Due Diligence?
While PEP Screening is a component of general due diligence for regulatory compliance, it specifically focuses on political exposure. General due diligence encompasses broader checks, including financial background and criminal history. PEP Screening, however, zeroes in on the unique risks associated with political connections. It is a targeted approach to ensure compliance with regulations designed to prevent financial crimes. PEP screening is considered a standard due diligence procedure, and is generally handled by legal teams and services; not a cybersecurity consideration or service.
How to use PEP Screening in a sentence?
To mitigate risk and adhere to regulatory requirements, our compliance team performs thorough PEP Screening for all high-value transactions and new client relationships.
How long does PEP Screening take?
The duration of PEP Screening can vary depending on the depth of the investigation and the volume of data to be reviewed. Generally, it takes from a few hours to several days to complete, ensuring that all relevant information about the individual’s political exposure and associated risks is thoroughly evaluated.