https://www.oceansys.com/ofac_solution.aspx | ¨Monitoring the OPEC Watch list for individuals identified as PEP can help international banks to ensure that they are always following the letter of the law. OPEC Screening Software can make this entire process much easier.

1. WATCH LIST OFAC /
PEP

2. What is a PEP?
 A PEP is a politically
exposed person. This is
either a political official or
someone related or with
direct ties to a political
official.
 It isn’t illegal for
businesses to work with
these parties, but there are
certain risks involved.
 OFAC screening software
with links to PEP
databases help identify
these individuals for banks
and financial institutions.

3. What are the Risks?
 PEPs are more likely to
engage in behavior that
could compromise the
integrity of a bank or
financial institution.
 This could mean being
involved in bribery, fraud,
or other forms of illegal
activity.
 It is important to monitor
any banking activity for
these individuals to
remain OFAC compliant.

4. What Does the OFAC PEP Watch List
Monitor?
 The system looks at a
diverse set of information.
 This includes customer
information, wire transfers,
ACH, letters of credit, and
other types transactions.
 The system scans the
watch lists against
transactions and client
information to provide a
total picture of the risks for
any PEP.

5. How Can a Bank Identify a PEP
 The PEP may be
updated from various
sources that publish lists
of PEPs, such as those
from FACITVA,
WORLDCHECK, or
LEXIS/NEXIS.

6. Which Transactions Should Be Monitored?
 If a bank chooses to do
business with a PEP, it
should monitor activity to
prevent liability.
 This means examining
cash and check
deposits, wire transfers,
and other movements of
money.
 Taking on the risk of a
PEP means keeping an
eye out for suspicious
activity.

7. What Can Happen if a Bank Fails to
Monitor?
 Banks are required to
practice due diligence.
 Taking on a PEP without
this practice could result
in hefty fines leveraged
against the bank.
 Examples of PEPs that
successfully skirted the
rules with the assistance
of banks that did not
follow due diligence
include Hosni Mubarek
and Muammar Gadafi.

8. What Else Can OFAC Screening Do?
 OFAC screening can do
more than identify PEPs.
 It can identify known
aliases to ensure that
banks are able to make
informed decisions
about doing business
with certain parties.
 The algorithms are set to
prevent false positives.

9. Additional Considerations
 Just because someone
is a PEP does not mean
that he or she can’t be a
good, honest client.
 When banks have as
much information as
possible, they can make
more informed
decisions.
 OFAC screening helps
take the guesswork out
of business dealings and
liability.

10. Contact Us
 www.oceansys.com
 877-623-2660
 www.twitter.com/oceansys

11. Image Attribution
 All images from www.pixabay.com.