KYC DECODED

Perhaps it goes without saying that customers of financial institutions who are politically exposed persons (PEPs) come with varying degrees of risk. In addition to their elevated political status, which can make them attractive targets for bribery and corruption, there’s also the subsequent institutional risk of reputational damage and fines from getting your dealings with PEPs wrong. Sometimes you might hear someone refer to needing some "PEP screening" as it if it's a simple process, but even the definition of what constitutes a PEP and the regulation surrounding it is far from one-size-fits-all.

In this episode, we are very pleased to welcome PEP experts Colleen Dychdala, Head of PEP data and premium content for Moody’s Analytics KYC, along with Eric Almbladh, who built the preeminent PEP database for the Nordic region - Bogard, which was acquired by Moody’s in 2021. Their conversation with host, Alex Pillow, tackles the complexities of PEP risk management programs, including:

• The many nuances of what constitutes a PEP and its associated level of risk
• The distinction between domestic and international PEPs
• How the PEP landscape has evolved
• Where PEP risk mitigation programs go wrong
• How PEP screening can scale beyond initial customer onboarding

Looking for more information on PEPs? Check out these resources to further your knowledge:

• FATF PEP Guidance
• EU AML Directives
• The Wolfsberg Group Publication Statement Guidance on Politically Exposed Persons (PEPs)
• Moody’s Analytics KYC PEP insight pieces

Ready to take your organization’s PEP risk management program to the next level? Learn how our Grid database can help and get in touch; we’d love to help.