PEPs and Sanction Lists: How to ensure regulatory compliance in remote identity verification

In the digital onboarding process, identity verification has become a fundamental part of ensuring security and regulatory compliance in online transactions. One of the crucial aspects in this process is the review of the PEPs (Politically Exposed Persons) and sanctions lists.

What are the PEPs and sanctions lists?

The PEPs and sanctions lists are international databases maintained by different government agencies and international organizations. These lists contain information about individuals and entities that are subject to legal, financial, or business restrictions due to their involvement with political activities or international sanctions.

PEPs are people who hold or have held prominent political positions, such as heads of state, ministers, senior government officials, high-ranking politicians, ambassadors, judges, magistrates, etc. These individuals are considered high risk in terms of money laundering and terrorist financing.

On the other hand, sanctions lists include individuals, organizations, or countries that are subject to financial or trade restrictions as a result of international sanctions. These sanctions can be imposed by international organizations such as the United Nations (UN), the European Union (EU) or the United States Treasury Department, to name a few.

The importance of reviewing PEPs and sanctions lists

Manually reviewing all PEPs and sanctions lists can be a complex and tedious process. These lists are regularly updated and contain thousands of names and entities. In addition, they are written in different languages and formats, which makes the review process even more difficult.

Fortunately, there are remote identity verification solutions that can automate this process and provide accurate and up-to-date results in a matter of seconds. These solutions use advanced technology, such as AI algorithms and machine learning, to efficiently match user-provided data against PEPs and sanctions lists.

Benefits of using an identity verification solution with a list of PEPs and integrated sanctions:

• Save time and resources: Automating the list review process allows companies to save time and resources by avoiding manual review and reducing the risk of human error.
• Regulatory compliance: By using an identity verification solution with a PEP list and integrated sanctions, companies can be sure that they are complying with regulations and legal requirements regarding security and anti-money laundering.
• Constant updating: Remote identity verification solutions automatically update PEPs and sanctions lists, ensuring the results are accurate and up-to-date.
• Increased security: By avoiding associations with individuals or entities associated with illicit activities, businesses can protect their reputations and avoid long-term damage.

Conclusion

The review of PEPs and sanctions lists is essential to guarantee regulatory compliance in remote identity verification. Getting an identity verification solution integrated with these lists offers businesses an efficient and accurate way to prevent money laundering, terrorist financing, and sanctions violations.

By automating this process, companies can save time and resources, comply with applicable legal regulations, and avoid risky partnerships. In addition, this measure provides greater security and protection to the reputation of the company in the long term.

Do not miss our next posts where we will delve into other key aspects to ensure an efficient and secure remote identity verification process.