Challenges of identifying and monitoring politically exposed persons (PEPs) in Latin America
| Autor: | Piedad Maribel Rosero Rosero, Gloria Esperanza Aragón Cuamacás, Joel Harry Clavijo Suntura |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
050208 finance
Latin Americans Public Administration Process (engineering) business.industry 05 social sciences Control (management) 02 engineering and technology Public relations Money laundering Identification system Identification (information) Work (electrical) Action (philosophy) 0502 economics and business 0202 electrical engineering electronic engineering information engineering 020201 artificial intelligence & image processing Business Law General Economics Econometrics and Finance |
| Zdroj: | Journal of Money Laundering Control. 24:268-277 |
| ISSN: | 1368-5201 |
| DOI: | 10.1108/jmlc-05-2020-0061 |
| Popis: | Purpose The purpose of this paper is to analyze politically exposed persons (PEPs) according to Financial Action Task Force (FATF) Recommendations and assess the identification process followed by financial institutions to create a harmonized regional model for PEPs identification in Latin America. Design/methodology/approach FATF Recommendation No.12 states that financial institutions should identify PEPs. To do so, the latter uses either an internal identification system or an external database. Within this framework, the purpose of the research work is to determine whether the procedure adopted by the regulated entities complies with the requirements of the regulations. Both analytical and interpretative methods have been used for this purpose. Findings In accordance with FATF Recommendation No.12, national and foreign PEPs, as well as officials of relevant international organizations, close relatives and closest associates must be identified. This wide range of people forms an hybrid type of PEPs. Because of the lack of a harmonized identification policy, it is likely that some people who meet these conditions may not be spotted. Originality/value PEPs control success relies on accurate and prompt identification. Therefore, it is crucial to create an inter-state model of harmonized identification at a regional level in Latin America. It includes not only the participation of the obligated subjects but also the sector entities associated to the concerned economic activity. |
| Databáze: | OpenAIRE |
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