PEP and sanction checks

Screen new and existing customers against PEP and sanction data bases and protect your business. 

PEP and sanctions lists check
Identify individuals and organizations

Sanctions lists, watch and black lists deliver data of individuals and entities with a potential money laundering risk. For PEPs (politically exposed persons), enhanced due diligence requirements apply. Banks, insurance companies and financial service providers regularly screen and actively monitor new and existing customes to meet regulatory requirements. 

Approach

Risk-based customer assessment

Comparing customer data with PEP and sanctions lists is a component of risk management for any financial institution or insurance company. The automated screening of customer data propels more legal and reputational security. 

Person at risk or PEP?

To check risks, financial institutions and insurers require the data of persons on PEP and sanctions lists. These can be persons or legal entities with which no business relationship may be entertained due to legal requirements, or persons who pose a risk for the company’s reputation. The best-known, non-commercial sanctions lists are the EU and OFAC lists. Commercial list providers are World Compliance or Thomson Reuters (WorldCheck). As PEP and sanctions lists contain millions of entries, banks and insurers only have one option: to use risk-based software.

Quality of a Hit

During sanction checking with ACTICO's Name Matching Customer software, various attributes can produce a hit, such as last name, first name, date of birth or country. Companies can decide whether the attributes need to match precisely, or they can opt for partially exact or fuzzy correlation with entries on a PEP or sanctions list. They can for example specify that the name, date of birth and country can be a 100 percent match while the first name is a similar match. This assures the quality of a hit even in case of spelling variations due to international names or misspellings.

Priority of a Hit

In addition to the quality of a match, its priority is significant. For example, matches for a person listed in the "Crime" category are high-priority. On the other hand, if the person is listed as a PEP, this is considered to be medium-priority because a PEP does not constitute as an immediate compliance risk. Financial institutions can change the matches in individual priority levels. This process supports the risk-based approach recommended by anti-money laundering laws, giving banks and insurers more freedom in designing their compliance policies.

product
Software for PEP and Sanctions Lists Checks   
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Software for checking customer data against sactions lists
Name Matching Customer
Check PEP and sanctions lists
ACTICO's compliance software Name Matching Customer (NMC) checks personal data against one or several checklists and also manages a local and global checklist. Both the current customer base as well as potential new customers are included in the regular automated testing.