What are PEP checks?
PEP stands for Politically Exposed Person. These are individuals who hold prominent public positions and may present a higher risk of corruption or misuse of funds.
What are sanctions checks?
Sanctions checks identify individuals or entities that are subject to government restrictions, meaning firms may be prohibited from engaging with them.
What is adverse media screening?
Adverse media screening involves reviewing publicly available information to identify potential risks, such as:
- Fraud allegations
- Criminal activity
- Regulatory breaches
Why these checks matter
These checks form part of enhanced due diligence (EDD) and are essential for identifying higher-risk clients.
Failing to conduct them properly can result in:
- Regulatory penalties
- Reputational damage
- Exposure to financial crime
When should these checks be performed?
- During client onboarding
- When a client’s risk profile changes
- Periodically for ongoing monitoring
Challenges with manual screening
- Time-consuming searches
- Inconsistent results
- Lack of documentation
- Difficulty maintaining ongoing monitoring
How InfoTrack supports screening
InfoTrack’s Compliance Centre enables firms to:
- Conduct PEPs, sanctions, and adverse media checks in one place
- Apply consistent screening processes
- Store results automatically
- Maintain a clear audit trail
Final thoughts
Screening is not just about ticking a box. It is about understanding risk and making informed decisions about who you act for.