Understanding PEPs and Sanctions

In today's highly regulated environment, understanding who you are doing business with is paramount, especially in the property sector which can be targeted for illicit financial activities.

Politically Exposed Persons (PEPs)

A Politically Exposed Person (PEP) is an individual who is, or has been, entrusted with a prominent public function. PEPs may present a higher risk for potential involvement in bribery and corruption by virtue of their position and the influence they may hold. Screening for PEPs is a critical component of Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures.

Sanctions Lists

Sanctions are political and economic measures imposed by countries or international bodies (like the UN, EU, UK HMT, US OFAC) against targeted states, entities, or individuals to respond to breaches of international law or to combat threats like terrorism and proliferation. Doing business with sanctioned individuals or entities is typically prohibited and can lead to severe penalties. Sanctions screening involves checking if prospective tenants or associated parties appear on these official lists.

Professional discussing compliance chart

Why is PEP & Sanctions Screening Essential for the UK Property Sector?

The UK property market is subject to stringent AML regulations designed to prevent it from being used for money laundering or terrorist financing. PEP and Sanctions screening is not just good practice; it's a legal necessity for many.

Regulatory Compliance: Adherence to The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) and subsequent amendments is mandatory. These regulations require relevant businesses, including letting agents, to conduct thorough customer due diligence (CDD).
Risk Mitigation: Identifying high-risk individuals or sanctioned entities early on helps protect your business from financial crime, significant fines, reputational damage, and potential criminal charges.
Protecting Your Business: Unwittingly facilitating transactions for sanctioned individuals or those involved in financial crime can have devastating consequences for your business's legitimacy and operational continuity.
National Security: Effective screening contributes to national efforts to combat terrorism and illicit finance, safeguarding the integrity of the UK's financial system.

Team of property professionals in a meeting

Who Benefits from Our Screening Services?

ClearCompliance provides essential PEP and Sanctions screening for a range of professionals and businesses within the UK property sector:

Letting Agents: To meet your AML obligations when onboarding new tenants and landlords.
Landlords: Particularly portfolio landlords or those dealing with high-value rentals, to ensure tenants are not high-risk or sanctioned.
Property Management Companies: To maintain compliance across managed portfolios.
Estate Agents: When involved in sales transactions, as part of their due diligence.
Any business within the property sector that falls under the scope of the MLRs requiring customer due diligence.

Our services are tailored to help you apply a risk-based approach, ensuring that the level of due diligence is appropriate to the identified risk.

The ClearCompliance Screening Advantage

Our PEP & Sanctions Screening service is designed for accuracy, efficiency, and comprehensive coverage.

Comprehensive Global Watchlist Coverage

We check against an extensive range of global and domestic watchlists, including but not limited to:

HM Treasury (HMT) UK Sanctions List
Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List
United Nations (UN) Consolidated Sanctions List
European Union (EU) Consolidated Financial Sanctions List
Lists of Politically Exposed Persons from numerous jurisdictions worldwide.
Other relevant national and international law enforcement and regulatory watchlists.

Ongoing Monitoring & Real-Time Alerts

The risk landscape is dynamic. Individuals can become PEPs or be added to sanctions lists at any time. Our service includes ongoing monitoring, providing you with real-time alerts if a tenant's status changes post-onboarding, ensuring continuous compliance.

Adverse Media Checks Integration

Beyond formal lists, we integrate adverse media checks. This involves scanning reputable global news sources and other publicly available information for negative news related to potential tenants, which might indicate heightened risk even if they don't appear on a PEP or sanctions list.

Detailed and Actionable Reporting

Receive clear, concise reports that highlight potential matches and provide the necessary information to make informed decisions. Our platform helps you document your due diligence efforts, which is crucial for regulatory scrutiny.

Benefits of Partnering with ClearCompliance

Enhanced Compliance: Confidently meet your legal and regulatory obligations under UK AML/CTF laws.
Reduced Risk Exposure: Proactively identify and mitigate risks associated with financial crime and sanctioned individuals.
Protect Your Reputation: Safeguard your business's integrity and public image.
Streamlined Processes: Our user-friendly platform and efficient checks save you time and resources.
Informed Decision-Making: Gain the insights you need to make sound judgments about prospective tenants.
Peace of Mind: Focus on your core business activities, knowing your screening needs are handled by experts.

Business professional feeling confident and secure

PEP & Sanctions Screening