The Importance of Why Firms Dealing with PEPs Must Adopt a Risk-Based Approach to Their Compliance Programmes

Abstract

Purpose – The purpose of this paper is to discuss the importance of why firms must adopt a risk-based approach to their compliance programmes.

Design/methodology/approach – This paper relies mainly on primary and secondary data drawn from the public domain. It also relies on documentary research.

Findings – A risked based approach has proved to be advantageous in helping firms reduce the risk(s) posed by PEPs.

Research limitations/implications – This paper discusses the importance of the risk-based approach in relation to Politically Exposed Persons. It does not deal with other high risk customers.

Keywords: Risk-Based Approach, PEPs, Customer Due Diligence, Enhanced Due Diligence, Senior Management Approval, Enhanced On Going Monitoring