Dow Jones Watchlist Publishes New Approach to Identifying Politically Exposed Persons (PEPs)
Step by step method marks move toward targeted, risk-based compliance programs; Sets framework for more effective and less costly client and transaction screening.
San Francisco, CA, September 17, 2008 --(PR.com)-- To assist regulated firms working to meet the international Know Your Customer regulation, today Dow Jones Watchlist (formerly Factiva Public Figures & Associates) (www.fis.dowjones.com/products/watchlist.html) publishes “The New Step by Step Approach to Client Screening,” a white paper that details a new framework for developing targeted risk-based AML programs.
Recently revised Politically Exposed Persons (PEPs) guidelines from the respected Wolfsberg Group has sought to support regulated firms struggling with their risk based approach. The white paper from Dow Jones Watchlist highlights the risks and challenges associated with regulated firms’ obligation to identify PEPs and provides eight practical implementation measures to reduce false positives and increase screening accuracy by combining structured identification information, client data and risk awareness.
“Our targeted risk-based approach enables firms to customize compliance efforts so they have sufficient time and resources to focus on the realistic risks to their individual businesses,” said Rupert de Ruig, Managing Director of Dow Jones Risk & Compliance, the business group that includes Dow Jones Watchlist. “By employing this step by step process to client screening, firms will confidently identify high-risk PEPs and other risk categories while reducing the number of false-positives ― eliminating the time spent and costs of investigating those entities.”
The report details several steps to implementing a targeted risk-based compliance program. Those steps include employing selective PEP definitions by job role, incorporating country and relations risk and employing risk-based name-matching tolerance.
The steps in Dow Jones Watchlist’s approach are designed to manage the open nature of the AML laws, a frequent source of aggravation for regulated firms.
“The ambiguity of the global AML laws means that firms are not pigeon-holed into a single approach, which is both a challenge and an opportunity,” said Mr. de Ruig. “The framework Dow Jones Watchlist has developed enables regulated firms to implement client screening programs tailored to their individual organization’s market, location and risk tolerance. This approach manages institutional risk and minimizes costs more effectively than ineffective and expensive ‘all or nothing’ approaches.”
The targeted risk-based approach to client screening was developed based on experience gained since 2001 working with the international Dow Jones Watchlist client base. Dow Jones Watchlist is a global database which tracks and monitors sanctions, PEPs and several other risk categories. It is used by regulated firms including enterprise wide implementations in eight of the top 10 global financial institutions.
To download a copy of the white paper, “The New Step by Step Approach to Client Screening,” visit www.solutions.dowjones.com/watchlist/successfulscreening.
To learn more about Dow Jones Watchlist, visit www.fis.dowjones.com/products/watchlist.html or contact Kim Gagliardi at (603) 864-8873 or kimberly.gagliardi@dowjones.com.
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About Dow Jones
Dow Jones & Company (www.dowjones.com) is a News Corporation company (NYSE: NWS, NWS.A; ASX: NWS, NWSLV; www.newscorp.com). Dow Jones is a leading provider of global business news and information services. Its Consumer Media Group publishes The Wall Street Journal, Barron's, MarketWatch and the Far Eastern Economic Review. Its Enterprise Media Group includes Dow Jones Newswires, Dow Jones Factiva, Dow Jones Client Solutions, Dow Jones Indexes and Dow Jones Financial Information Services. Its Local Media Group operates community-based information franchises. Dow Jones owns 50% of SmartMoney and 33% of STOXX Ltd. and provides news content to radio stations in the U.S.
Recently revised Politically Exposed Persons (PEPs) guidelines from the respected Wolfsberg Group has sought to support regulated firms struggling with their risk based approach. The white paper from Dow Jones Watchlist highlights the risks and challenges associated with regulated firms’ obligation to identify PEPs and provides eight practical implementation measures to reduce false positives and increase screening accuracy by combining structured identification information, client data and risk awareness.
“Our targeted risk-based approach enables firms to customize compliance efforts so they have sufficient time and resources to focus on the realistic risks to their individual businesses,” said Rupert de Ruig, Managing Director of Dow Jones Risk & Compliance, the business group that includes Dow Jones Watchlist. “By employing this step by step process to client screening, firms will confidently identify high-risk PEPs and other risk categories while reducing the number of false-positives ― eliminating the time spent and costs of investigating those entities.”
The report details several steps to implementing a targeted risk-based compliance program. Those steps include employing selective PEP definitions by job role, incorporating country and relations risk and employing risk-based name-matching tolerance.
The steps in Dow Jones Watchlist’s approach are designed to manage the open nature of the AML laws, a frequent source of aggravation for regulated firms.
“The ambiguity of the global AML laws means that firms are not pigeon-holed into a single approach, which is both a challenge and an opportunity,” said Mr. de Ruig. “The framework Dow Jones Watchlist has developed enables regulated firms to implement client screening programs tailored to their individual organization’s market, location and risk tolerance. This approach manages institutional risk and minimizes costs more effectively than ineffective and expensive ‘all or nothing’ approaches.”
The targeted risk-based approach to client screening was developed based on experience gained since 2001 working with the international Dow Jones Watchlist client base. Dow Jones Watchlist is a global database which tracks and monitors sanctions, PEPs and several other risk categories. It is used by regulated firms including enterprise wide implementations in eight of the top 10 global financial institutions.
To download a copy of the white paper, “The New Step by Step Approach to Client Screening,” visit www.solutions.dowjones.com/watchlist/successfulscreening.
To learn more about Dow Jones Watchlist, visit www.fis.dowjones.com/products/watchlist.html or contact Kim Gagliardi at (603) 864-8873 or kimberly.gagliardi@dowjones.com.
###
About Dow Jones
Dow Jones & Company (www.dowjones.com) is a News Corporation company (NYSE: NWS, NWS.A; ASX: NWS, NWSLV; www.newscorp.com). Dow Jones is a leading provider of global business news and information services. Its Consumer Media Group publishes The Wall Street Journal, Barron's, MarketWatch and the Far Eastern Economic Review. Its Enterprise Media Group includes Dow Jones Newswires, Dow Jones Factiva, Dow Jones Client Solutions, Dow Jones Indexes and Dow Jones Financial Information Services. Its Local Media Group operates community-based information franchises. Dow Jones owns 50% of SmartMoney and 33% of STOXX Ltd. and provides news content to radio stations in the U.S.
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Dow Jones & Company
Kim Gagliardi
603-864-8873
www.fis.dowjones.com/products/watchlist.html
Kim Gagliardi
603-864-8873
www.fis.dowjones.com/products/watchlist.html
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