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Automate compliance to perfection with one single connection

Published on
March 28, 2024
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Many organizations that operate under the scope of AML (Anti-Money Laundering) rules are wise to fortify and revamp their compliance processes with digitization and automation. A single connection to ZignSec improves the effectiveness of PEP and sanction checks by automating the entire KYC process and associated workload, enabling a stellar customer experience.

PEP, Sanction, and adverse media checks

One of the essential steps in the KYC process is the PEP and sanction checks where clients are checked against sanctions, PEP, and watchlists. PEP checks are made to identify and conduct CDD (Customer Due Diligence) on a PEP (Politically Exposed Person) or some other high-risk customer. According to the FATF (Financial Action Task Force) Guidance, the definition of a PEP is an individual who is or has been entrusted with prominent public functions either domestically or abroad, e.g., a head of state or senior politician. These individuals require special attention as their privileged position present the potential for corrupt activities. The PEP list also includes close business associates and family members.

The FATF recommends taking a risk-based approach to PEPs which is a crucial part of an effective KYC process aiming to keep tainted funds of corrupt politicians and their networks out of the legitimate financial system.Sanction lists are established to reduce financial crime by flagging people (also businesses and countries) that have committed or are suspected of committing illegal acts. These sanction lists are a compilation of various regulatory and enhanced due diligence lists from major sanctioning bodies around the globe. Sanction checks ensure that no individuals on global law enforcement and sanctions lists are allowed to make financial transactions. This check also includes an overhaul of daily publications from financial, regulatory, and disciplinary authorities worldwide, commonly referred to as an adverse media check. Organizations need to perform a detailed PEP and sanction check when onboarding new customers as well as an ongoing review of clients, to ensure that the company's reputation, revenue, and capital are protected. Businesses that fail to identify PEPs or breach rules regarding individuals on sanctions lists can be subject to substantial fines and penalties.


A seamless real-time customer experience

An efficient automated KYC process creates a great customer onboarding experience, reduces manual labour and compliance costs while resulting in a higher customer acceptance rate. Automation enables swift client identification and initial risk assessment, two essential steps incorporated at the beginning of a potential relationship with a new customer. To ensure continuous compliance with AML regulation organizations need to automate ongoing monitoring of individuals and entities against PEPs and sanction lists to monitor customers every so often and to be alerted of any changes to a customer’s circumstance or status. With a 30-40% increase every year in the PEPs list alone, it is important to check new and existing clients.

The data that organizations check their customers against should be comprehensive, up to date, and consolidated all in one place with other watch list databases to ensure they identify sanctions from all relevant bodies. Automation improves the accuracy and effectiveness of the PEP and sanction checks and the entire KYC process sequentially as many of the steps can be run simultaneously, creating a seamless real-time customer experience. Improving the customer experience has time and time again been proven to increase retention, satisfaction, and revenue regardless of the business. Customers stay loyal to companies due to the experience they receive, their loyalty is no longer based on price or product. Companies investing in automated KYC processes and workflows improve operational efficiency, reduce fraud, lower operational costs, and enhance the client experience.

Utilize our one-connection system

PEP and sanction checks implemented via ZignSec serve as a robust and effective integral piece of carrying out an initial risk assessment with real-time-access to multiple global PEP and sanction lists, increasing both geographic coverage and quality of service. Our platform consolidates global PEP lists, Government Sanction Lists, Anti-Terrorism Lists, CIA Lists, and bespoke geographic lists. Organizations that connect with ZignSec escape several integration interfaces as they can utilize our one-connection system for all their KYC processes and streamline customer onboarding, due diligence, and monitoring.

ZignSec provides all compliance solutions and the automation needed to validate different customer identity aspects (e.g., online identity verification, biometric check, PEP & sanction checks, etc.). With our platform continuously aggregating KYC, KYB, and AML compliance solutions, ZignSec can improve the effectiveness of your processes and workflows enabling you to deliver a stellar customer experience through automation. Companies doing business with another business must also protect their interests. ZignSec enables companies to fulfil the requirements of KYB (Know Your Business) and automate the process of verifying the business owner's identity, examining the ownership structure and its beneficial owners' identities and more.

Verify and validate the legitimacy of your corporate clients

Evaluating corporate clients involves digging, investigation, and complicated decision-making. Our extensive portfolio of KYB-focused products and workflow solutions mitigate these efforts.