Financial institutions are under strict requirements when onboarding clients, regardless of whether this is done digitally, or in the old-fashioned way, by meeting face-to-face. The driver behind this is the AMLD (Anti-Money Laundering Directive), which aims to prevent money laundering and terrorist financing.
One of the checks that has to be performed is checking whether the person being onboarded is a PEP (Politically Exposed Person). PEP is a term describing someone who has been entrusted with a prominent public function. A PEP generally presents a higher risk for potential involvement in bribery and corruption by virtue of their position and the influence that they may hold. there is not a global definition of a PEP. Still people with PEP status are typically politicians, judicial or military officials, senior executives of state owned political parties and important political party officials. PEP status also apply to family member and close associates of PEPs.
Enhanced Due Deligence
When onboarding a user with PEP status, the AMLD requires that EDD (Enhanced Due Diligence) is to be performed. This includes even more extensive background checks of the person.
Signicat has now included PEP check in our Signicat Assure solution. This means that when using Signicat Assure for onboarding digital customers, a PEP check can be performed in the background. Information about the PEP status is returned to the bank (or any organization requesting this information when onboarding). The bank can then execute additional EDD check, which may also be provided by Signicat.
Click here to get more information about Signicat Assure and simple, cost-efficient and user-friendly onboarding.
Blog post by John Erik Setsaas, Identity Architect, Signicat