Sanctions and politically exposed persons screening
An IT solution that provides the screening of financial institution customers and related persons (e.g., beneficial owners, officials, authorised persons), counterparties transaction (payment) details against data on politically exposed persons and sanctions lists.
Benefits of such IT solution to the financial institution:
- help to clarify the existence of a politically exposed person status prior to starting business relations with a customer and during relations with a customer;
- reduce/address the sanctions risk associated with relationship or dealing with sanctioned persons;
- identify cases of non-compliance with and/or circumvention of sanctions requirements.
- Politically exposed persons are considered to be persons exposed to an increased money laundering risk, according to their influence in the public sector, which can be used for personal gain. In particular, there is an increased probability that politically exposed persons can use services of a financial institution for legalization of funds derived from a criminal offence, such as corruption.
- International sanctions are certain restrictions imposed in line with international law on the sanctions subject, which are adopted by the United Nations or the European Union or another international organisation the Member State of which is Latvia, and which are directly applicable or implemented in Latvia.
The following sanctions may be introduced in Latvia:
- financial restrictions;
- civil law restrictions;
- restrictions on admission;
- restrictions on the movement of goods of strategic importance and other goods;
- restrictions on the provision of tourism services.
