In South Africa, PEP (Politically Exposed Person) and sanctions tests are typically used by financial institutions and certain designated non-financial businesses and professions to comply with anti-money laundering and counter-terrorist financing regulations.

PEP’s are people who, due to prominent positions or roles, could be susceptible to corruption or bribery. Sanctions are measures used to restrict financial transactions or trade with targeted individuals, entities, or countries.

PEP and sanctions tests need to be conducted on those in positions of financial risk to pre-empt the likelihood of your company falling prey to financial crime or restrictions from external organisations. When dealing with finances, the importance of hiring employees who are low risk for financial crime, is of the utmost importance.

Here’s a breakdown of who could use PEP and sanctions tests:

Designated Non-Financial Businesses and Professions (DNFBPs) refer to a category of entities or professions that are not primarily financial institutions but are susceptible to being used for money laundering and terrorist financing activities.

DNFBPs are often considered high-risk due to the nature of their business activities and the potential for handling large sums of money or facilitating transactions that could be exploited for illicit purposes.

Here are some examples of DNFBPs:

1.   Attorneys and Legal Professionals:

2.   Accountants and Auditors:

3.   Real Estate Agents and Brokers:

4.   Trust and Company Service Providers (TCSPs):

5.   Dealers in Precious Metals and Stones:

6.   Other High-Risk Professions:

PEP (Politically Exposed Person) and sanctions tests for employee screening are essential components of anti-money laundering and counter-terrorist financing regulations.

Here’s how these tests are typically conducted:

1.   Politically Exposed Persons (PEPs) Screening:

2.   Sanctions Screening:

3.   Ongoing Monitoring and Updates:

Avoid the risk of financial crime in your organisation by adding PEP and sanctions screening to your employee screening process. iFacts can assist.

Hire with confidence, hire with iFacts.

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