Can VerifyNow Check for PEP Status in South Africa? (FICA/KYC)

Can VerifyNow check for PEP status? Yes—VerifyNow supports PEP screening as part of a practical, risk-based FICA and KYC programme for General Business in South Africa.

If you’re onboarding customers, suppliers, donors, partners, or high-value clients, PEP status is one of the most important risk signals to identify early—before you approve an account, sign a contract, or process payments. In this guide, we’ll break down what PEP screening is, why it matters under FICA, and how to build a streamlined workflow using VerifyNow.

Important compliance note
PEP screening is not a “nice-to-have.” It’s a core control in a risk-based compliance programme—especially when your business faces bribery, procurement, cross-border, or high-value transaction risks.

What PEP Status Means (and Why It Matters for FICA & KYC)

**What is a PEP?**

A Politically Exposed Person (PEP) is typically someone who holds (or has held) a prominent public function—plus often their close associates and immediate family. PEPs are not “bad customers,” but they can present higher financial crime risk due to access to public funds, influence, and procurement decision-making.

In a General Business context, you might encounter PEP risk when onboarding:

A new corporate client with government contracts
A supplier linked to a public official
A high-net-worth customer making large payments
A director/shareholder of a company (especially where ownership is complex)

Why PEP screening supports FICA compliance

Under FICA, accountable institutions must apply a risk-based approach to customer due diligence (CDD). Even if your organisation isn’t formally listed as an accountable institution, PEP screening is still a strong best practice for:

KYC onboarding controls
Fraud prevention
Anti-bribery and corruption governance
Reputational risk management

For authoritative guidance, refer to:

The Financial Intelligence Centre (FIC): fic.gov.za
The Financial Sector Conduct Authority (FSCA): fsca.co.za

PEP vs sanctions vs adverse media (quick clarity)

PEP screening often sits alongside other checks:

PEP: elevated corruption/bribery risk indicator
Sanctions: legal restrictions (must not transact)
Adverse media: reputational and fraud-risk signals

Important compliance note
A PEP match doesn’t automatically mean “reject.” It means enhanced due diligence (EDD) and stronger approval controls are usually required.

Can VerifyNow Check for PEP Status? What You Can Expect in Practice

How VerifyNow supports PEP screening workflows

Using VerifyNow’s platform, businesses can incorporate PEP status checks into onboarding and ongoing monitoring processes—without turning compliance into a slow, manual bottleneck.

With VerifyNow, you can typically build a workflow that includes:

Identity verification (ID validation and customer details capture)
KYC checks aligned to your internal risk policy
PEP screening as a risk flag during onboarding
Audit-friendly records for governance and reporting

Explore the platform here: VerifyNow

What happens when a PEP risk is detected?

When screening indicates a potential PEP hit, strong General Business controls usually include:

Match review (confirm identity and relevance)
Risk scoring based on your policy (role, geography, transaction size, channel)
Enhanced due diligence (source of funds/wealth, purpose of relationship)
Senior approval or compliance sign-off
Ongoing monitoring for changes in risk profile

What records should you keep for FICA/KYC audits?

Whether you’re a regulated entity or following best practice, keep an audit trail that includes:

Verified identity data and method used
Screening results (PEP/sanctions/adverse indicators, where applicable)
Decision outcomes and approvals
Notes for EDD steps taken
Dates/timestamps and responsible staff members

Use inline controls like risk_rating = "high" or EDD_required = true in your internal checklist to standardise decisions across teams.

Building a Risk-Based PEP Screening Policy for General Business

A simple, scalable policy structure

A practical policy doesn’t need to be complicated—it needs to be consistent and defensible.

Here’s a lightweight policy model many South African businesses use:

Low risk: standard onboarding + basic KYC
Medium risk: add extra verification steps + management review
High risk: PEP screening + EDD + senior approval + monitoring

When should you screen for PEP status?

Most organisations benefit from screening at these points:

Onboarding (before account activation or contracting)
Material changes (new directors, ownership changes, new bank details)
High-value triggers (large payments, unusual transaction patterns)
Periodic reviews (based on risk tier)

Important compliance note
One-and-done screening is a common weakness. A customer’s risk profile can change, so your monitoring should reflect that.

PEP screening + POPIA: staying compliant while reducing risk

PEP screening involves processing personal information, so ensure your approach aligns with POPIA principles: lawful processing, minimality, security safeguards, and purpose limitation.

Useful official resources:

Information Regulator: inforegulator.org.za
POPIA guidance and resources: popia.co.za

This year’s POPIA reality: breach reporting and penalties

South African organisations are under growing pressure to tighten privacy operations. Key current realities include:

Data breach reporting expectations are increasing (document your incident response steps)
The POPIA eServices Portal is now a practical channel for regulatory processes
Administrative fines can reach ZAR 10 million for certain POPIA contraventions

Actionable steps:

Limit access to screening results (role-based permissions)
Encrypt stored documents and logs
Keep retention schedules clear and enforced
Train staff on “need-to-know” handling

💡 Ready to streamline your General Business compliance? Sign up for VerifyNow and start verifying IDs in seconds.

How VerifyNow Fits into a Complete FICA/KYC Workflow (with Examples)

A practical onboarding flow you can implement

Here’s a straightforward way to combine FICA, KYC, and PEP screening using VerifyNow:

Capture customer details (individual or business)
Verify identity documents and core data
Screen for PEP status (and other risk indicators where relevant)
Apply your risk policy (low/medium/high)
Trigger EDD and approvals if needed
Store results and generate an audit trail
Schedule ongoing monitoring based on risk tier

Example: risk-based decisions (simple table)

Use a table like this internally to standardise outcomes:

Scenario	Risk Level	Recommended Action
New customer, local, low transaction value	Low	Standard KYC + approve
Supplier linked to public procurement	High	PEP screening + EDD + senior approval
Director change in an existing client	Medium	Rescreen key persons + management review
Cross-border payments + complex ownership	High	EDD, verify UBOs, document source of funds

What “Enhanced Due Diligence” can include

When PEP risk is present, EDD commonly includes:

Source of funds and/or source of wealth explanation
Proof of income or business revenue documents (where appropriate)
Clear relationship purpose (why they need your service)
Contract/payment justification for unusual patterns
Senior management sign-off for approval

If you’re still relying on spreadsheets and manual checks, your risk increases every time you onboard at speed.

Make PEP screening part of your everyday workflow:
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FAQ: PEP Screening, FICA, KYC, and VerifyNow

Can VerifyNow check for PEP status automatically?

VerifyNow can support PEP screening as part of an onboarding workflow, helping you flag higher-risk profiles early. The best approach is to combine screening with a documented risk policy and clear escalation steps.

Is PEP screening required under FICA for every business in South Africa?

Not every business is regulated as an accountable institution, but PEP screening is a strong best practice across General Business—especially where you handle large payments, procurement, cross-border clients, or high fraud risk.

What should we do if a customer is a PEP?

Don’t panic—and don’t ignore it. Apply:

Enhanced due diligence (EDD)
Senior approval
Ongoing monitoring Then document your decision-making process.

Does PEP screening conflict with POPIA?

Not if done correctly. Ensure you process personal information lawfully, keep data secure, limit access, and retain records only as long as necessary. Use official guidance from the Information Regulator and POPIA resources at popia.co.za.

How often should we re-screen customers for PEP status?

Use a risk-based schedule:

High risk: more frequent reviews
Low risk: periodic reviews or trigger-based rescreening
Also rescreen when there are material changes (ownership, directors, transaction behaviour).

Get Started with VerifyNow Today

PEP screening is one of the fastest ways to reduce compliance and reputational risk—without slowing down onboarding. With VerifyNow, you can build a repeatable workflow that supports FICA, KYC, and POPIA-aligned recordkeeping for General Business in South Africa.

Benefits of signing up:

Faster onboarding with consistent KYC steps
PEP risk visibility to support better decisions
Audit-friendly records for governance and internal controls
Reduced manual effort with a streamlined verification process
Better alignment to POPIA expectations (security and accountability)