PePEX

PEP-Ex provides a secure and anonymous platform which enables a financial crime professional to validate his or her own assessment of the political exposure presented by a given corporate structure against similar assessments made both within their peer network and organisations across other industry sectors.

The PEP-Ex platform provides an individual instant access to the knowledge base within other organisations who have a relationship with the same corporate structure. This knowledge base is comprised of a number of elements – external EDD providers, automated screening solutions, relationship managers, local knowledge and industry expertise.

The cost of maintaining any one of these elements is considerable for each organisation. PEP-Ex allows each member organisation to potentially offset some of that cost through a community model of shared experience. The results of this shared approach may enable each organisation to deploy resources on a risk-based approach.

In  an  environment where  the  demands  of  global  regulators  are  increasing  with  respect  to institutions’ approach to the political exposure of their suppliers and counterparties, PEP-Ex provides members with a unique reference source outside of any of the standard current industry databases on offer.

PEP-Ex provides organisations with an early warning capability which can alert them to potential failures or breaches in their current assessment process for analysing the political exposure of their counterparties.

Examples of systemic failures within initial and ongoing assessments that would potentially go unchallenged without leveraging the PEP-Ex platform;

  • Coverage Gaps within current screening databases causing politically exposed individuals to pass through the on boarding process undetected
  • Systemic Errors caused during the configuration of current screening databases in a particular organisation causing potential positive hits at an individual or entity level to go undetected
  • Lack of Fuzzy matching logic can limit the number of potential hits generated which an organisation should be analysing as part of ordinary course due diligence.
  • Timing delays which occur between corporate governance events (change of directors, share transfers) and when they are reported in the public domain or updated in screening databases. The most accurate information originates from the last organisation to obtain due diligence information direct from the client.
  • Nominee Relationships not detected in the initial on boarding process i.e. the true political exposure within an ownership/control structure is not identified through traditional screening of individuals
  • Human Error causing names of individuals to be mis-spelt, incorrectly translated or otherwise incorrectly presented for screening which would cause an otherwise positive hit to go unnoticed
  • Incorrect initial risk assessments applied at the outset of the on boarding process may result in a reduced due diligence standard being applied e.g. PEP individuals not being identified within Simplified Due Diligence situations.
  • Peer Group comparisons with respect to the number of other institutions having a relationship with a particular entity despite political associations

Key PEP-Ex Benefits

  • PEP-Ex Establishes a Centralised PEP Master List from non-public sources
  • PEP-Ex Performs a matching process and returns delta files to Member Institutions
  • Access data provided by corporate intelligence agencies and not appearing on public source databases
  • Screen against corporate vehicles where PEP  control has been obscured from public source databases
  • Leverage intelligence from peer institutions to inform your enhanced due diligence process
  • Benchmark  your   own   PEP   classifications  across   a population of institutions from different sectors
  • Evidence to regulators that your PEP screening is not reliant on a single source search

Coverage

  • Globally to all institutions required to identify corporate relationships with PEP exposure
  • All industry sectors impacted by AML legislation specifically focussed
  • All industry sectors impacted by legislation
  • Corporate vehicles which at least one member institution identifies as a Corporate PEP