Of course you want to comply with laws, regulations and directives, both to assume your responsibility on the market and to be compliant. We have already seen that the sanctions against those who fail are tough. With new requirements in money laundering directives, the task will not be any easier. The biggest change in the directive means that the PEP (Politically Exposed Person) concept has been expanded. This means that work on identifying and managing politically exposed persons is increasing for all financial institutions and companies.
New legislation requires financial institutions and companies to check whether their customers are PEP (Politically Exposed Persons) or if they are included in sanctions for money laundering and terrorism. A PEP is considered by his or her position and influence to hold a position which poses a risk of being exploited, for example through bribery. It relates to people who have or have had an important public function, such as members or heads of government, or who hold management functions in international organizations. It is not forbidden to do business with PEPs or with their family members or known associates (RCA, Relative or Close Associates), but the law requires companies to know which customers are PEPs.
Sanction lists are lists from the EU or UN containing names of persons who are sanctioned due to links with terrorism. It is not permitted to do business with these persons.
Through our partnership with Dun & Bradstreet, we have solutions that ensure that you always make international business deals with relevant decision-making data and that the process to comply with the applicable regulatory framework is streamlined. By choosing the right customers and being aware of any obligations related to the business relationship, you create the prerequisites for achieving full customer knowledge.