GlossaryEN1 min readUpdated: Jun 26, 2026

PEP Screening

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://www.fatf-gafi.org/publications/fatf-recommendations/documents/fatf-recommendations.html

Category

Logistics Concept

Reading time

1 min

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140

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Definition & Explanation

PEP Screening is the systematic review to determine whether a person qualifies as a Politically Exposed Person (PEP) – meaning they hold or have held a significant public office such as minister, ambassador, judge, senior military officer, or leading official of an international organisation. PEPs and their close associates (family members, known business partners) are treated under regulatory frameworks as presenting elevated risk for corruption and money laundering. In freight forwarding and customs practice, PEP screening is applied during customer onboarding and on an ongoing basis during transaction reviews, drawing on reference lists such as EU sanctions registers, UN sanctions lists, and national PEP databases. A positive match does not automatically disqualify a counterparty but triggers Enhanced Due Diligence (EDD) – this is the key distinction from a straightforward sanctions list check, which typically requires an immediate refusal to transact.