Head of international organization politically exposed persons (HIO PEPs) are high-rank individuals who are currently or previously have been appointed to a prominent position or function within an international organization in question. Into the category fall only members of senior management or individuals bearing top positions of the equivalent power.
To give an example, HIO PEP can be entrusted directors, deputies, members of the board or equal functionaries.
How and why HIOs pose a threat to your business?
Onboarding an HIO PEP bears the risk of jeopardizing the company’s credibility. Why? Politically exposed persons are individuals entrusted with power and public function.
Thus, by virtue of the position they hold PEPs are given the benefit of a doubt having a higher potential of abusing the financial system. They are regarded as prone to participation in fraudulent activities which rarely undergo without a public scandal surrounding it.
PEP such as a head of international organization fits the profile of Designated Non-Financial Businesses and Professions and is often a subject to adverse media check to prevent having any links to criminal deeds and negative publicity.
Although being a head of an international organization does not directly suggest or indicate involvement in financial crimes, still, it requires a proper adverse media check.
HIO PEPs pose a threat to potential partners and compels to conduct screening as a part of ongoing customer risk assessment procedure to shield yourself and expose a company’s complicity in money laundering, fraud, racketeering, bribery, and embezzlement.
To keep your reputation nice and clean there are many services that provide HIO PEP screenings. Sumsub is an automated KYC/AML compliance solution that exposes the very nature of the client by conducting an ongoing customer assessment procedure. To protect your business now – get in touch.