What are SIPs and RCAs?

Special Interest Persons (SIPs) are similar to PEPs but rather than having an increased risk of money laundering due to their public position, their risk is due to previous involvement, or suspected involvement, in crime. SIPs are people who have been convicted, arrested or are undergoing investigation for serious financial or organized crime.
Relatives and Close Associates (RCAs), sometimes referred to as ‘PEPs by association’, are related to or have a close connection to a PEP. RCAs will include spouses, partners, family members including in-laws, as well as close friends, legal advisors, and business associates.

What is Sanction and PEP Screening?

Lists of individuals, companies and other entities known to be or suspected of being engaged in anything illegal are issued by governments and financial authorities. PEP and Sanction Screening is when businesses use these lists to screen individuals and businesses as part of their customer due diligence, compliance, and AML processes.

Why is it important to screen for Sanctions, PEPs, SIPs and RCAs?

It is not illegal to do business with PEPs, SIPs or RCAs but you need to know if someone is a PEP or on a Sanction list so you can evaluate the risk of entering into a customer relationship with them or halt proceedings altogether. It is important to screen for RCAs due to their relationship with someone in a position of authority and influence and their increased proximity to bribery, blackmail and corruption.

How do I monitor PEPs, SIPs and RCAs?

Sanction lists are issued by different governments across the world but there is no one central list with all known PEPs, SIPs and RCAs. Keeping records up to date manually is virtually impossible. The most reliable way to monitor Sanction lists is via electronic daily monitoring. SmartSearch uses the Dow Jones WatchList, which compiles data from more than 1,100 global PEP and Sanction lists and is updated daily.