Don't be PEP-paranoid

Over the years, I have seen an enormous amount of confusion - and possibly some hyperventilation - when it comes to identifying and managing PEP risk, says Mario Menz. I often encounter what I call "PEP Paranoia" - a feeling of fear and helplessness that grinds onboarding to a halt whenever firms discover someone is a politically exposed person. PEP Paranoia seems to affect everyone, from junior analysts to senior executives: firms deal with it in different ways, from declining relationships to collecting, and creating, extensive documentation. But there is a better way of managing PEP risk.

Mario Menz (mario.menz@hotmail.co.uk) is Head of Compliance & MLRO for Ghana International Bank (London) and Postdoctoral Researcher in Risk and Decision Theory at the University of Chichester. He has previously taught financial services law & anti-corruption at London Metropolitan University's Guildhall School of Business and Law.

Over the years, I have seen an enormous amount of confusion - and possibly some hyperventilation - when it comes to identifying and managing PEP risk, says Mario Menz. I often encounter what I call "PEP Paranoia" - a feeling of fear and helplessness that grinds onboarding to a halt whenever firms discover someone is a politically exposed person. PEP Paranoia seems to affect everyone, from junior analysts to senior executives: firms deal with it in different ways, from declining relationships to collecting, and creating, extensive documentation. But there is a better way of managing PEP risk.