{"id":11401,"date":"2026-05-29T06:55:40","date_gmt":"2026-05-29T06:55:40","guid":{"rendered":"https:\/\/www.amlcc.com\/?p=11041"},"modified":"2026-05-29T06:55:40","modified_gmt":"2026-05-29T06:55:40","slug":"whats-the-difference-between-a-pep-check-and-a-sanctions-check","status":"publish","type":"post","link":"https:\/\/www.amlcc.com\/bm\/whats-the-difference-between-a-pep-check-and-a-sanctions-check\/","title":{"rendered":"What’s the difference between a PEP check and a sanctions check?"},"content":{"rendered":"\n

What’s the difference between a PEP check and a sanctions check?<\/h1>\n\n\n
\"Richard<\/div>
Richard Simms<\/span>

Director and Founder of AMLCC and AMLCC Consult<\/h3><\/div><\/div><\/div><\/div>\n\n\n
\"What's<\/figure><\/div><\/div>\n\n\n\n
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PEP checks and sanctions checks are two of the most common screening processes carried out by regulated firms. They often run alongside each other, sometimes through the same software, which is partly why they get lumped together. But they do quite different jobs.<\/p>\n\n\n\n

A politically exposed person<\/a> (PEP) check identifies whether a client, beneficial owner or other relevant individual is a politically exposed person, meaning someone who holds, or has recently held, a prominent public function. <\/p>\n\n\n\n

A sanctions check<\/a> identifies whether that same person appears on an official list of individuals, entities or ships subject to financial restrictions.<\/p>\n\n\n\n

The distinction matters because the response required of you is different too.<\/p>\n\n\n\n

Where each check comes from<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n

Both checks have their roots in the standards set by FATF<\/a>, the international body that shapes how countries approach anti-money laundering<\/a>, counter-terrorist financing<\/a> and counter-proliferation financing<\/a>.<\/p>\n\n\n\n

PEP screening reflects FATF Recommendation 12, which addresses the elevated corruption risk that comes with proximity to political power. <\/p>\n\n\n\n

PEPs are more likely than the general population to be in a position to misuse public funds, accept bribes or move proceeds of corruption through professional services. This doesn\u2019t mean that every PEP is corrupt but simply that the opportunity exists.<\/p>\n\n\n\n

Sanctions screening reflects FATF Recommendation 6, which addresses targeted financial sanctions relating to terrorism and proliferation, alongside broader sanctions regimes administered nationally and internationally. <\/p>\n\n\n\n

Alongside FATF\u2019s Black List<\/a> and Grey List<\/a>, most countries publish a consolidated list of designated persons, entities and vessels, drawing from UN measures and their own foreign policy decisions.<\/p>\n\n\n\n

What a PEP check tells you<\/strong><\/strong><\/strong><\/h2>\n\n\n\n

A PEP check identifies an elevated risk category. Being a PEP is not illegal and PEPs are entitled to use professional and financial services like anyone else. The status simply tells you that corruption risk is higher than average and that closer scrutiny is required.<\/p>\n\n\n\n

Where a PEP is identified, regulated firms are typically required to:<\/p>\n\n\n\n