PEP is not one category but three, and the obligations attaching to each differ across regimes. Add relatives and close associates and the population a firm must identify is several times larger than most screening configurations look for. This guide sets out the definitions, where FATF and MAS diverge, and what enhanced due diligence actually requires.
PEP screening is one of the controls regulators scrutinize most aggressively — and one most firms execute inconsistently. This guide covers the four-tier classification model, Relatives & Close Associates mapping, source-quality benchmarks for PEP databases, status decay rules, and the false-positive failure modes that cost compliance teams hours every week.
A sanctions screening programme is how regulated firms ensure they never provide financial services to individuals or entities subject to government prohibitions. Learn which lists you must screen against, what triggers a match, and how modern systems handle false positives at scale.
A Politically Exposed Person holds a prominent public role that raises their money laundering risk and triggers Enhanced Due Diligence. Learn who qualifies, what FCA and FATF regulations require, and how automated PEP screening works in practice.
