Sanctions, PEPs, and RCA Checks
What are Sanctions and PEPs?
Sanctions are used by governments across the world to restrict - or prohibit entirely - trade with people or organizations involved in criminal activities.
A PEP - Politically Exposed Person - is someone whose prominent position in public life makes them more vulnerable to bribery and corruption, so it is important to assess the potential risks of entering into a customer relationship with them.
We can answer your questions about Sanctions, PEPs, and RCA Checks
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 likely to be high-profile people who have been convicted of - or been subject to an investigation into - serious financial or organized crime. RCAs - Relatives and Close Associates - sometimes referred to as ‘PEPs by association’ are related to or have a close connection to a PEP. RCAs will include spouses and partners, any family including in-laws, as well as close friends, legal advisors, and any business associates.
What is PEP and Sanction 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, and SIPs?
It is not illegal to do business with PEPs, SIPs or RCAs but you need to know if someone has been matched to a PEP or Sanctions list so you can evaluate the risk of entering into a customer relationship with them. It is also important to screen for RCAs, because, due to their relationship with someone in a position of authority and influence, their vulnerability to bribery, blackmail and corruption is increased.
How do I monitor PEPs, SIPS and RCAs?
Sanctions lists are issued by different governments across the world but there is no one central list with all known PEPs, SIPs and RCAs, so keeping records up to date manually is virtually impossible. The most reliable way to monitor Sanctions lists is via electronic daily monitoring. SmartSearch uses the Dow Jones WatchList, which uses data from more than 1,100 global PEPs and Sanctions lists and is updated daily.We can help
The SmartSearch platform automatically performs Sanction, PEP, SIP and RCA screening on every AML check you run and will automatically trigger Enhanced Due Diligence on any matches. Our ongoing monitoring service screens all checks against updated Sanctions lists every night and alerts you of any changes.
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