EXPERT FORECAST : BANKING AND FINANCE
Greg Pinn , Babel Street ’ s Director of Name Screening
is elected or illegally funnelling money to their campaign are key corruption events .
3 . Position level and locale : The type of position is also an important measure of PEP risk . It is common practice to consider PEPs with greater influence ( presidents , prime ministers , national legislators ) as being at a higher risk than local leaders . However , not all local politicians are equal . The mayor of Paris , London , Mexico City or Tokyo will have a higher risk profile than the mayor of a smaller city . Exceptions must be made to increase the risk profiles of PEPs when their jurisdictions elevate their power potential .
Legislation around the world differs for how domestic versus foreign PEPs should be treated . For example , in the UK , new rules went into effect in January 2024 classifying domestic PEPs as lower risk than foreign PEPs .
They still require enhanced due diligence , but less than that applied to foreign PEPs .
4 . Relationships : Bribery schemes may go beyond direct cash payments , to involve remuneration such as paid tuition for children , trips , cars or luxury goods for spouses or close associates or purchasing homes for parents .
AI and PEP risk mitigation
Newer technologies using AI – such as automated workflows , AI-based screening , and advanced name-matching technologies
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