PEP (Politically Exposed Person)
A Politically Exposed Person is an individual entrusted with a prominent public function, along with their close associates and family, who therefore carries a higher risk of bribery or corruption. Being a PEP is not a wrongdoing finding; it is a risk flag that requires enhanced due diligence.
A PEP anywhere in your ownership structure or customer base triggers enhanced due diligence and slows onboarding, and an undisclosed PEP discovered later is treated as a red flag that can close an account. Screening for PEPs before you apply avoids a delay that otherwise adds 2-4 weeks mid-review.
Enhanced Due Diligence is the deeper set of checks a firm applies to higher-risk customers: politically exposed persons, high-value clients, or those in high-risk jurisdictions.
An Ultimate Beneficial Owner is the natural person who ultimately owns or controls a company, typically defined as holding more than 25% of shares or voting rights, or otherwise exercising control.
Sanctions screening is the checking of customers, counterparties, and transactions against government and international sanctions lists, such as those maintained by the UN, EU, OFAC, and the UK.
Adverse media screening is the checking of a customer, owner, or counterparty against negative news sources: reports of fraud, regulatory action, sanctions, or criminal association.