Screening plays a crucial role in the customer onboarding process and the framework for AML compliance. This process is designed to determine whether a customer or business associate is subject to sanctions, has a criminal background, or is classified as a politically exposed person (PEP). PEP screening is essential because these individuals have the potential to influence a country’s political and economic landscape, making them more susceptible to financial crimes such as bribery and corruption. As a result, PEP screening has become mandatory to mitigate these risks, leading to Enhanced Due Diligence, which involves investigating the sources of their funds.
