What is PEP?

The first time I ran a Google search on the PEP, it brought up websites about post-exposure prophylaxis.  That’s not exactly what I was looking for.

I was searching for the PEP, you ask?  The PEP (politically exposed person) is just as it sounds. A person on the PEP is usually an existing or previous senior foreign political figure, their direct family, and their close contacts/associates.

PEPs are not only typical political figures. They can also be executives of a foreign government-owned corporation.

Now, why does PEP matter to you?

PEPs have used financial institutions as conduits for corruption, bribery, money laundering… the list goes on with illegal activities.

But, not all PEPs have the same amount of risk.  Their individual risk will be determined by several different factors (geographic locations, business they are in, position, level of authority, etc).  Products, services and size as well as the complexity of the account determine the risk as well.

As of the year 2001, banks and financial institutions are required to use procedures to establish risk in order to determine if a person is on the PEP list. Banks that choose to still “do business” with dishonest PEPs face a huge risk, more regulations and possible supervisory action. So … make sure you are checking the PEP list.

Integra makes it easy.  Find out how at www.integrasystems.net.

 

BSA Compliance | Here are 2 quick ways to find out if you are BSA compliant.

The Bank Secrecy Act (aka. The Currency and Foreign Transactions Reporting Act of 1970) requires U.S. financial institutions (banks, etc.) to assist U.S. government agencies in detecting and preventing money laundering. This act is also referred to as AML.

Here is what it means for you:

  1. Keep records of cash purchases or unfixed catalysts, file reports of cash transactions more than $10,000 (daily collective amount)
  2. Report any suspicious activity that could to money laundering, tax evasion or any other criminal activities.

For more information about the Bank Secrecy Act click this link. http://www.fincen.gov/statutes_regs/bsa/