What is PEP screening?

PEP screening, or Politically Exposed Person screening, is a process used by financial institutions and other regulated organizations to identify individuals who hold prominent public positions or have close associations with such persons. The goal is to assess and manage the risks of money laundering, corruption, or bribery that may arise from dealing with PEPs. Screening typically involves checking customer information against specialized databases to ensure compliance with anti-money laundering (AML) regulations.