With Anti-Money laundering (AML) and Counter Terrorism Financing (CTF) legislation at the focus of security and fraud detection globally, PEP and sanction screening is becoming the foundation of many necessary requirements for businesses in complying with AML regulation around the world.
Many businesses are required by law to perform Know Your Customer (KYC) checks on their customers and business partners. PEP and sanction checks involve businesses screening new and existing customers to determine whether the customer poses as a risk to the business. This is a requirement for many businesses under AML regulation as a part of KYC. PEP and sanction screening along with customer due diligence is an important part of KYC, businesses must find an effective solution to meet these requirements as set by the law otherwise they may face hefty fines for not complying.
Third party services in the regtech industry are booming, these services assist businesses in meeting their AML requirements through online applications. Through the use of third-party services, businesses are able to add value to their business, ensuring the security of their clientele and reducing the possibility of money laundering and terrorism financing acts which allows them to successfully build credibility and maintain a strong reputation among customers.
With regulation in place for many countries and differing between industries, businesses must find efficient and cost-effective solutions. Third party services provide varying solutions for businesses with many different features, data sources and pricing models. MemberCheck is a third-party solution that provides an online AML service for PEP and sanction screening. Offering a subscription and Pay-As-You-Go option against Thomson Reuters World-Check database, businesses are able to perform PEP and sanction checks, scanning against an up-to-date database of PEP’s and sanction lists. The service also has batch scanning capabilities as well as an API that can be used to integrate with clients existing systems.