The Importance of PEP List Screening

  • Fraud Prevention

The lack of fraud prevention is a very serious and growing problem. Protecting your company against fraud requires constant vigilance. Every company needs some sort of fraud prevention tools to monitor the many types of potentially fraudulent customers. One potential problem is a Politically Exposed Person commonly referred to as PEP, which can present a serious fraud risk. The definition of PEP can vary among different countries, but they generally include people who serve a prominent public function or their relatives and close associates. PEP may also be classified as those convicted of money laundering or even known terrorists.

In addition to protecting yourself against fraud, there are government relations, which require reporting suspicious activities by PEP. This would necessitate a suspicious activity report, which must be sent to the US Treasury's Financial Crimes Enforcement Network(FINCEN). Failure to follow these guidelines can lead to serious fines. The process of performing due diligence to uncover PEPs can be time consuming and requires screening against a reputable database of known PEPs. These databases usually contain about 1 million profiles. In order to verify identity, each profile will include a picture, the persons age, social security number (for U.S. citizens) and other information. Checking all this detail obviously involves a considerable amount of time.

The increased amount of international crime thanks to advances in communications and other business technology make protecting yourself against PEPs even more important than ever before. The only practical method of fraud prevention is to use an electronic verification system. There is really no other way to keep up with the constantly changing problems. Even if you arent concerned with the possibility of unintentionally doing business with terrorists, any government official or associate is a serious potential fraud risk.

EVS has been at the forefront of this increasingly important concern and offers some of the finest PEP list screening available. With IndentiFraud Consumer, corporations can seamlessly protect themselves against the fraud potential of PEPs. EVS uses a variety of data points to create Advanced Residence Verification and History. This allows the business to confirm a customers current residence and their 12 previous locations. Products like residence verification and phone verification will set your business up with state-of-the-art fraud protection to combat the risk associated with PEPs.


[Contributed by EVS Marketing]