What is PEP screening?
PEP screening identifies politically exposed persons, family members, and close associates for enhanced due diligence. Naiza returns structured match evidence for investigation. FATF Recommendations 12 and 22 provide the reference for these relationships.
Updated 5 October 2026
How PEP results support enhanced due diligence
A PEP match usually means higher corruption or influence risk, not that the person is prohibited. Policy should define when to collect extra information, when to escalate, and when a similar-name match can be cleared.
How it connects to AML operations
PEP results should travel with the customer record and later events. If a payment or case is reviewed, investigators need the original screening identifier and the list context that produced the hit.
How Naiza returns PEP context
Naiza returns PEP and related watchlist context through the AML screening API. Store the screening identifier and connect match evidence to investigator cases and enhanced due diligence reviews.
Who counts as a PEP
The definition follows FATF guidance and covers the person in the role and the people around them.
| Category | Examples |
|---|---|
| Domestic PEPs | Ministers, senior government officials, senior judges, senior military officers, and heads of state-owned companies in your own country. |
| Foreign PEPs | People holding the same kinds of roles in another country. |
| International organization PEPs | Senior management of international bodies such as UN agencies or development banks. |
| Family members | Spouses, children and their spouses, parents, and siblings. |
| Close associates | Business partners, joint owners of companies, and others with close business or personal ties. |
What enhanced due diligence looks like
A PEP match changes how you manage the relationship. It does not end it. A typical EDD file covers:
- Source of funds for the transactions you expect, and source of wealth for the customer overall.
- Approval from senior management before the relationship starts or continues.
- Closer ongoing monitoring, with lower alert thresholds on large or unusual transactions.
- A periodic review of the relationship, at least once a year.
- A written record of the decision and the evidence behind it.
PEP screening for Saudi customers
Many customers in the Kingdom work in the public sector, but PEP status applies to prominent functions, not to every government employee. A program that flags every civil servant buries the real PEPs under noise.
Common family names shared with senior officials are a second source of noise. Date of birth and the full name chain, including the father's and grandfather's names, are what separate a relative from a namesake.
How long someone stays a PEP
FATF guidance takes a risk-based view rather than a fixed end date. Many programs keep PEP treatment for at least a year after the person leaves office, and longer where the role carried significant influence or the person keeps it informally. Record the date the role ended and review the status at the next periodic check.
Frequently asked questions
Answers about screening, risk signals, and Naiza integration.
What does PEP stand for in AML?
PEP means politically exposed person. Screening looks for those individuals and often their relatives or close associates in commercial and official datasets.
Should every PEP match be blocked?
Route PEP matches to enhanced due diligence. Use the returned identity and source details to distinguish the listed person from similar-name matches and document the review.
How do teams use a PEP screening API?
A server sends the customer or entity, stores the screening identifier, and routes possible matches into a review queue with the returned list context.
Is it a problem to have a PEP as a customer?
No. PEPs can be customers. The match means you apply enhanced due diligence, understand the source of funds, get senior approval, and monitor the relationship more closely.
Are family members of PEPs screened?
Yes. Spouses, children, parents, siblings, and close business associates are part of PEP screening because proceeds of corruption often move through people close to the official.
What is the difference between a PEP check and sanctions screening?
A sanctions match identifies a party you cannot deal with. A PEP match identifies a person with public influence who needs closer due diligence but can remain a customer.