PEP status is an important factor in the risk score, but it doesn’t mean that all PEPs are involved in money laundering. Therefore, further due diligence to probe the source of wealth is needed.

While a potential match during name screening calls for further inquiry, a true positive match in the case of PEPs also demands further information to ascertain actual risk levels.

It is not only the initial name screening but also the customer’s behaviour and transaction patterns that matter the most in detecting the actual risk level associated with the customer.