Legislation requires financial institutions and companies to check whether their customers are politically exposed persons (PEP), or if they are on the sanction lists of money laundering and terrorism. A PEP is considered to, through position and influence, hold a position which constitutes a risk of being taken advantage of for bribery and other crimes. It is essentially about those who have or have had an important public function, such as cabinet members or heads of government. It also includes people who hold managerial positions in international organizations.
It is not forbidden to do business with PEP nor with their relatives or close associates (RCA), but the law requires that companies are aware of which customers are PEP. Sanction lists include listings from the EU and the UN that contain names of people who are sanctioned because of involvement in or links to terrorism. It is not allowed to do business with said persons.
Bisnode’s solutions ensure that you always do business with relevant decision-making data, and streamline the process for you to follow the rules that apply. By selecting the right customers and being aware of potential liabilities related to the business relationship, you will create conditions to achieve adequate due diligence.