Are you concerned with financial crimes such as money laundering, fraud, and corruption that can be associated with PEPs?
Using PEP screening software is a good method to protect your business. According to John Pierpont Morgan, “Millionaires do not study astrology. They employ statisticians.”
PEP screening software assists companies in easily identifying and tracking Politically exposed persons.
Such people may become involved in financial crimes more easily than other individuals. With this software, the risks associated with the threats can be avoided, and due diligence can be improved among businesses.
In this article, we will understand how PEP screening software assists in preventing financial crimes.
What is PEP Screening Software?
The PEP screening tool aids financial institutions in doing a PEP list of Politically Exposed Persons. These people occupy key official posts.
They can engage in embezzlement or money laundering. Recent research established that the new PEPs are detected approximately 1,400 times yearly.
PEP software also searches through databases to identify high-risk individuals. When implementing PEP Compliance software, businesses can remain legally compliant with regulators and protect themselves from desperate financial criminals.
Bonus: Learn more about our PEP compliance software and improve financial protection and regulatory compliance across every transaction.
Identify Politically Exposed Persons
PEP check is employed to identify people who hold key political positions or are affiliated with politicians in any way.
It is important for the various banking and other financial institutions to determine Politically Exposed Persons.
Social and analytic studies suggest that more than 10,000 people globally are listed as PEPs yearly. It is easy to accomplish this using PEP screening software.
Advanced technology also assists in quickly quantifying risks associated with these people based on the regulations and laws organizations must adhere to.
Managing Risk of Financial Crimes
Applying PEP screening software in organizations can mitigate the dangers of committing several types of fraud, such as money laundering or bribery.
There is always the option for PEP software to detect affiliations to PEP. This software by PEP Compliance will help companies prevent threats and fulfill their regulatory requirements.
This assists in protecting the business as well as its clients from the dangers of financial crimes. More than 40% of financial institutions claim to use PEP screening software to meet international AML regulations.
Need for PEP Screening in Compliance
PEP screening software assists in transacting with PEPs. This is very relevant to the legal frameworks governing fighting against money laundering.
With PEP software, companies are prevented from doing business with risky persons. The management of your business must conduct a PEP check to avoid legal and financial penalties.
This uses PEP Compliance software to keep the regulators fully informed, which can help maintain trust.
New studies show that more than 60% of international financial organizations use PEP screening to manage compliance risks.
Automatic PEP Identification and Monitoring
The identification and subsequent PEP monitoring must not be carried out manually but must be done with the aid of special PEP screening software.
It makes the identification of Politically Exposed Person easier. PEP software goes through databases and identifies people who may be at high risk.
This saves time and helps businesses continuously meet their compliance obligations without needing to check them repeatedly.
PEP Compliance software avoids mistakes and saves time in this process. In 2024, 30% of the costs incurred in PEP compliance could be cut using automated screening.
Improve Due Diligence with PEP List Check
PEP screening is also used during due diligence exercises. The firms can take a keen view of the risks associated with specific clients using PEP screening software.
PEP software easily detects politically exposed persons and resolves all the regulation problems within hours.
By conducting a PEP check, financial institutions can ensure they do not work with people of high risk. PEP Compliance software enhances a company’s due diligence process.
Worldwide regulatory sanctions for neglecting PEP identification have risen by a third within the last two years.
Minimize Risks Associated with Money Laundering
Screening using the PEPs software aids in minimizing money laundering exposure. One software feature is designed to identify if a client is a PEP.
Companies managed by PEPs are more involved in corruption or other related financial frauds. Research proves that financial institutions minimize illegality by 30% once identified PEPs.
An organization can determine these threats in the shortest time possible. A proper PEP check can safeguard your financial services and reputation.
Compliance with Regulations in PEP Screening
Financial authorities have set rules for organizations to conduct PEP checks on clients.
The FATF has stated that screening for PEPs is necessary to avoid steep penalties. This is very important to prevent shortfalls in penalties or even questions by the law.
PEP software is used to assist in the time consuming task of inserting data into the database manually. It enables you to conform to all regulations.
Get our PEP screening software for better financial risk management and guarantee a safer and more compliant business sphere.
