PEP screening: Everything you need to know
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November 2024: US presidential election
PEP categorization explained
ComplyAdvantage’s universal taxonomy builds on the FATF’s broader framework by considering local nuances and variations in classifications across different jurisdictions. This approach helps ensure consistency, improves risk assessments, and offers customers clear, up-to-date information tailored to their compliance needs.
Our PEP categorization is offered as standard – no extra or hidden charges.
Tune in as our expert panel shares key insights on identifying and screening PEPs effectively in today’s geopolitical climate.
The Cost of Ineffective PEP Categorization
New appointments, regulatory shifts, and geopolitical events can significantly alter customer risk profiles, making outdated information a liability.
Our PEP records are refreshed daily, ensuring our customers’ compliance frameworks stay responsive to change. Through automated monitoring of PEP data sources and proactive updates triggered by elections or major geopolitical events, we capture the latest shifts in risk.
Every new PEP identification or update, along with declarations of interest and company filings, triggers rapid data ingestion so your screening stays ahead of emerging threats.
Keeping pace: The importance of timely PEP updates
A comprehensive and practical look at the PEP landscape and how UK firms should navigate it.
Watch now
Back to basics
Deep dive
Not all PEP data is the same
Download our PEPs Guide
Our latest PEP data updates
PEPs change fast – the data we provide our clients with does too
Following the US presidential election on November 5, Donald Trump was declared president-elect at 05:34 EST. Less than 3 hours later, our PEP data was updated with an active start date reflecting the official date he will take office. By the next business day, 30 new members of the Senate had been elected. Our data was updated on November 5 at 10:17 EST. Within 48 hours of the president-elect declaration, 411 individuals were confirmed as members of the House of Representatives, with 25 results yet to be called. Our data was updated early on November 6 before US working hours began.
July 2024: France legislative elections
Just days after the UK elections, France held the final round of its legislative elections on July 7, 2024. The final results were announced in the early hours of July 8, 2024. Up-to-date PEP data was available to our clients within hours.
PEP Class 4
The fourth PEP class contains:
Mayors and members of local, county, city,
and district assemblies.
Senior executives of local governmental bodies (agencies, state-owned businesses).
Judges of local courts.
PEP Class 3
The third PEP class relates to:
National level state-owned enterprises.
Public sector institutions under regional level administration (eg regional agency, regional state-owned enterprises).
PEP Class 2
The second PEP class includes:
Members of regional governments, parliaments, and judiciary.
Senior officials and functionaries of
international and supranational organizations
and diplomatic missions.
PEP Class 1
The first PEP class contains all taxonomies with national-level PEPs such as:
National legislatures.
National cabinets.
Central banks.
Armed forces, police, fire service, and intelligence agencies.
Click the arrows to learn more
Navigating the ever-evolving world of PEPs can be complex, especially given the varying definitions and classifications across different jurisdictions.
To provide clarity, the Financial Action Task Force (FATF) has provided key definitions for PEPs and those closely associated with them.
Back to basics
Understanding PEP definitions
Get to know your PEPs – the key definitions and categories you need to know.
Foreign PEPs
Individuals who are prominent public figures in another country, such as foreign heads of state or government officials.
Click the arrows to learn more
Domestic PEPs
Individuals who hold prominent public positions within their own country, such as heads of state, government officials, or judges.
Relatives and close associates (RCA)
Individuals who are known to be closely associated with a PEP, including family members and business partners.
International PEPs
Individuals who are or have been entrusted with prominent functions by an international organization, such as the United Nations or the World Bank.
On-demand Webinar
Essential reading
What is a politically exposed person (PEP)?
What are RCAs: Relatives and close associates?
PEP screening compliance around the world
Understanding PEPs in banking
Understanding the relationships between PEPs and those around them is critical for accurate risk assessments. Family ties, close associates, and professional networks can all increase exposure to corruption or financial crime, which is why screening needs to be finely tuned to detect these connections.
With comprehensive PEP data, you can ensure your risk management strategies are calibrated for optimal compliance.
It’s who you know: Uncovering PEP connections
Combat the challenge of PEPs – uncover insights and strategies for effective risk management.
Deep dive
Does your data capture these critical connections?
Professional affiliations
Investigate PEPs’ ties to businesses, NGOs, and political organizations. This analysis can help uncover conflicts of interest or involvement in high-risk sectors, which may pose compliance challenges.
Familial and social networks
Examine relationships with family members and close associates, as these connections can often reveal indirect influence or potential collusion in illicit activities. Understanding how wealth and power dynamics operate within these networks is essential for risk assessments.
Geospatial analysis
Consider the geographical context of a PEP’s connections. Links to jurisdictions with elevated corruption risks, such as those identified by Transparency International, can signal increased exposure and necessitate enhanced due diligence.
Click to learn more
PEP red flags: 7 indicators for suspicion
PEPs screening process: 7 best practices
5 tips on how to choose the best AML PEP screening software
Advanced reading
Download now
This guide breaks down common PEP risk management questions, taking a comprehensive and practical look at the PEP landscape and how firms should navigate it.
The Challenge of PEPs
Downloadable resource
PEP declassification: Once a PEP, always a PEP?
Domestic PEP vs foreign PEPs – are they equal?
Accurate and reliable information is the bedrock of effective PEP risk management, as misidentifications or omissions can have severe legal and reputational consequences.
To mitigate these risks, we have developed a robust data collection process that ensures thoroughness and precision at every step.
How do we collect our data?
The benefits of our proprietary PEP data.
Not all PEP data is the same
1. Data gathering
Our data strategy team uses page scraping tools to create individual scrapers based on web pages identified by our research team.
Click the arrows to learn more
2. Quality review
While one data strategist prepares the scraper, two analysts verify data quality to ensure accurate extraction of key data points (e.g., photos, dates of birth, start dates).
3. Source monitoring
Data is primarily sourced from official institutional websites. When unavailable, reliable alternatives include governmental websites and transparency platforms. In less transparent regions, PEP information may come from press releases or appointment decrees.
4. Automated scraping
Scrapers are set to run automatically at predetermined frequencies. Human intervention is required only when website structures change, PEPs are missing, or additional input is needed.
5. 12-eye review process
Each new source is reviewed by at least six team members to minimize errors. If scraper adjustments are necessary, one or two additional reviewers ensure quality.
6. Continuous monitoring
Our team tracks national elections and appointments, updating the database within 24 hours of new PEP publication.
Collecting PEP data is only the first step; ensuring its quality is just as critical.
High-quality data helps organizations maintain compliance, reduce false positives, and better assess risks. So, what defines good PEP data?
How do we ensure best-in-class data quality?
Key hallmarks that guide our approach:
Includes detailed positional information. Domestic requirements are taken into account. Wide data coverage. Includes transactional behavior analysis.
What does “good” PEP data look like?
Read more on this topic from our Regulatory Affairs Practice Lead, Iain Armstrong.
Our benchmarking shows ComplyAdvantage's name-matching efficiency and effectiveness are market-leading, with name-matching rates of close to 100%. This is very good, almost exceptionally good, a little higher than we often see for exact name tests.
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Don’t just take our word for it
RegTech Solutions (formerly SQA Consulting) has rated ComplyAdvantage's PEP data coverage as 'Excellent.'
ComplyAdvantage provides near real-time updates to PEP data following general election results
Further reading
The lifecycle of a PEP: From identification to removal
How ComplyAdvantage defines and classifies a PEP
PEP data quality: ComplyAdvantage’s 12-eye review process explained
Get a demo
The Chartis RiskTech Quadrant for KYC Data recognized ComplyAdvantage as the only best-of-breed KYC data provider – demonstrating our deep history of dedicated financial crime risk prevention expertise.
September 2024: France's new cabinet
We updated our PEP data the next business day after Prime Minister Michel Barnier announced France's new cabinet on September 21. By Monday evening, clients had access to the latest details on 38 new ministers, delegates, and secretaries of state – 32 of whom were not previously listed as members of the National Government, with some newly graded as PEP Class 1.
September 2024: France's new cabinet
We updated our PEP data the next business day after Prime Minister Michel Barnier announced France's new cabinet on September 21. By Monday evening, clients had access to the latest details on 38 new ministers, delegates, and secretaries of state – 32 of whom were not previously listed as members of the National Government, with some newly graded as PEP Class 1.
July 2024: France legislative elections
Just days after the UK elections, France held the final round of its legislative elections on July 7, 2024. The final results were announced in the early hours of July 8, 2024. Up-to-date PEP data was available to our clients within hours.
Download the report
There is another risk dimension to the PEP community that is increasingly emerging and which, in 2024’s fiesta of democracy across the globe, pose perhaps an even greater risk.
In these days of significant geopolitical stress, finance has emerged as a frontline in the growing confrontation between democracies and authoritarian states. Consider the inducements and other forms of influence payment revealed, for example, to be allegedly offered to MEPs in Brussels. These payments are not made to win lucrative contracts or confound legislation a business might find unhelpful. They are made to secure favourable treatment of States – or worse, co-opt a politician in a position of power to work in another State’s interest.
State threats are on the rise, and democracy is under attack. This risks posed by PEPs for the private sector is only going get higher.
“
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Our latest PEP data updates
PEPs change fast – the data we provide our clients with does too
Following the UK general election on July 4, 2024, the BBC called the result a win for Labour at 05:04 on July 5. Less than 12 hours later, our team updated our PEP data to reflect the results from 644 declared constituencies, including re-elected and newly elected MPs.
Get to know your PEPs – the key definitions and categories you need to know.
Relatives and close associates (RCA)
Individuals who are known to be closely associated with a PEP, including family members and business partners.
International PEPs
Individuals who are or have been entrusted with prominent functions by an international organization, such as the United Nations or the World Bank.
Foreign PEPs
Individuals who are prominent public figures in another country, such as foreign heads of state or government officials.
Domestic PEPs
Individuals who hold prominent public positions within their own country, such as heads of state, government officials, or judges.
Click the arrows to learn more
Understanding PEP definitions
Navigating the ever-evolving world of PEPs can be complex, especially given the varying definitions and classifications across different jurisdictions.
To provide clarity, the Financial Action Task Force (FATF) has provided key definitions for PEPs and those closely associated with them.
PEP Class 4
The fourth PEP class contains:
Mayors and members of local, county, city,
and district assemblies.
Senior executives of local governmental bodies (agencies, state-owned businesses).
Judges of local courts.
PEP Class 3
The third PEP class relates to:
National level state-owned enterprises.
Public sector institutions under regional level administration (eg regional agency, regional state-owned enterprises).
PEP Class 2
The second PEP class includes:
Members of regional governments, parliaments, and judiciary.
Senior officials and functionaries of
international and supranational organizations
and diplomatic missions.
PEP Class 1
The first PEP class contains all taxonomies with national-level PEPs such as:
National legislatures.
National cabinets.
Central banks.
Armed forces, police, fire service, and intelligence agencies.
Click the arrows to learn more
PEP categorization explained
ComplyAdvantage’s universal taxonomy builds on the FATF’s broader framework by considering local nuances and variations in classifications across different jurisdictions. This approach helps ensure consistency, improves risk assessments, and offers customers clear, up-to-date information tailored to their compliance needs.
Our PEP categorization is offered as standard – no extra or hidden charges.
On-demand Webinar
Understanding PEPs in banking
PEP screening compliance around the world
What are RCAs: Relatives and close associates?
What is a politically exposed person (PEP)?
Essential reading
Our latest PEP data updates
Understanding PEP definitions
Get to know your PEPs – the key definitions and categories you need to know.
Navigating the ever-evolving world of PEPs can be complex, especially given the varying definitions and classifications across different jurisdictions.
To provide clarity, the Financial Action Task Force (FATF) has provided key definitions for PEPs and those closely associated with them.
Essential reading
Click the arrows to learn more
Watch now
On-demand Webinar
The Cost of Ineffective PEP Categorization
Tune in as our expert panel shares key insights on identifying and screening PEPs effectively in today’s geopolitical climate.
It’s who you know: Uncovering PEP connections
Understanding the relationships between PEPs and those around them is critical for accurate risk assessments. Family ties, close associates, and professional networks can all increase exposure to corruption or financial crime, which is why screening needs to be finely tuned to detect these connections.
With comprehensive PEP data, you can ensure your risk management strategies are calibrated for optimal compliance.
Essential reading
Our latest PEP data updates
Understanding PEP definitions
Get to know your PEPs – the key definitions and categories you need to know.
Navigating the ever-evolving world of PEPs can be complex, especially given the varying definitions and classifications across different jurisdictions.
To provide clarity, the Financial Action Task Force (FATF) has provided key definitions for PEPs and those closely associated with them.
6. Continuous monitoring
Our team tracks national elections and appointments, updating the database within 24 hours of new PEP publication.
5. 12-eye review process
Each new source is reviewed by at least six team members to minimize errors. If scraper adjustments are necessary, one or two additional reviewers ensure quality.
4. Automated scraping
Scrapers are set to run automatically at predetermined frequencies. Human intervention is required only when website structures change, PEPs are missing, or additional input is needed.
3. Source monitoring
Data is primarily sourced from official institutional websites. When unavailable, reliable alternatives include governmental websites and transparency platforms. In less transparent regions, PEP information may come from press releases or appointment decrees.
2. Quality review
While one data strategist prepares the scraper, two analysts verify data quality to ensure accurate extraction of key data points (e.g., photos, dates of birth, start dates).
1. Data gathering
Our data strategy team uses page scraping tools to create individual scrapers based on web pages identified by our research team.
Click the arrows to learn more
The Chartis RiskTech Quadrant for KYC Data recognized ComplyAdvantage as the only best-of-breed KYC data provider – demonstrating our deep history of dedicated financial crime risk prevention expertise.
How do we collect our data?
Accurate and reliable information is the bedrock of effective PEP risk management, as misidentifications or omissions can have severe legal and reputational consequences.
To mitigate these risks, we have developed a robust data collection process that ensures thoroughness and precision at every step.
Read more on this topic from our Regulatory Affairs Practice Lead, Iain Armstrong.
What does “good” PEP data look like?
Includes detailed positional information. Domestic requirements are taken into account. Wide data coverage. Includes transactional behavior analysis.
Key hallmarks that guide our approach:
How do we ensure best-in-class data quality?
Collecting PEP data is only the first step; ensuring its quality is just as critical.
High-quality data helps organizations maintain compliance, reduce false positives, and better assess risks. So, what defines good PEP data?
Advanced reading
1000s of organizations are already using ComplyAdvantage.
Learn how to streamline compliance and mitigate PEP risks with industry-leading solutions.
Download now
July 2024: UK general election
Following the UK general election on July 4, 2024, the BBC called the result a win for Labour at 05:04 on July 5. Less than 12 hours later, our team updated our PEP data to reflect the results from 644 declared constituencies, including re-elected and newly elected MPs.
July 2024: France legislative elections
Just days after the UK elections, France held the final round of its legislative elections on July 7, 2024. The final results were announced in the early hours of July 8, 2024. Up-to-date PEP data was available to our clients within hours.
September 2024: France's new cabinet
We updated our PEP data the next business day after Prime Minister Michel Barnier announced France's new cabinet on September 21. By Monday evening, clients had access to the latest details on 38 new ministers, delegates, and secretaries of state – 32 of whom were not previously listed as members of the National Government, with some newly graded as PEP Class 1.
September 2024: France's new cabinet
We updated our PEP data the next business day after Prime Minister Michel Barnier announced France's new cabinet on September 21. By Monday evening, clients had access to the latest details on 38 new ministers, delegates, and secretaries of state – 32 of whom were not previously listed as members of the National Government, with some newly graded as PEP Class 1.
September 2024: France's new cabinet
We updated our PEP data the next business day after Prime Minister Michel Barnier announced France's new cabinet on September 21. By Monday evening, clients had access to the latest details on 38 new ministers, delegates, and secretaries of state – 32 of whom were not previously listed as members of the National Government, with some newly graded as PEP Class 1.