How does VerifyNow check AML PEP in South Africa? (FICA KYC)

How does VerifyNow check AML PEP? VerifyNow helps South African businesses screen customers against PEP and sanctions risks to support FICA and KYC compliance—fast, consistent, and audit-ready.

When you’re onboarding customers, suppliers, donors, or investors, you’re not just collecting an ID number—you’re managing risk. Under FICA (and broader AML obligations), you’re expected to apply risk-based due diligence, including identifying Politically Exposed Persons (PEPs) and potential sanctions exposure.

This guide explains how VerifyNow checks AML PEP and how to build a practical, repeatable process using VerifyNow that works across industries in South Africa.

Important compliance note
PEP screening is not a “once-off tick box.” It should be part of ongoing, risk-based monitoring—especially for higher-risk customers and transactions.

1) Why AML PEP screening matters for FICA & KYC in South Africa

Bold basics: what “PEP” means in practice

A Politically Exposed Person (PEP) is generally someone who holds (or has held) a prominent public function and may pose increased bribery, corruption, or laundering risk. In real life, PEP risk also extends to family members and close associates.

In a South African compliance context, PEP screening supports:

Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD)
Risk-based onboarding decisions (approve, decline, escalate)
Ongoing monitoring where relationships or risk profiles change
Stronger fraud prevention and reputational protection

Key terms you’ll see (and should document)

FICA: Financial Intelligence Centre Act obligations, including identifying clients and managing AML risk
KYC: “Know Your Customer” processes used to verify identity and assess risk
AML: Anti-Money Laundering controls (policies, screening, monitoring, reporting)
PEP: Politically Exposed Person (higher-risk profile)
Sanctions: Restrictions that may prohibit dealings with certain persons/entities

For official guidance and sector notices, refer to the Financial Intelligence Centre and your relevant supervisory body.

POPIA and screening: yes, it applies

PEP screening involves personal information processing. That means you must align with POPIA obligations, including lawful processing, security safeguards, and breach response readiness. Helpful resources include:

Important compliance note
This year, regulators continue to emphasise accountability: strong governance, clear records, and the ability to demonstrate compliance on demand.

2) How VerifyNow checks AML PEP: a practical step-by-step workflow

Bold overview: what VerifyNow does during AML PEP screening

Using VerifyNow’s platform, you can screen individuals (and where applicable, entities and related parties) against relevant risk indicators. The goal is to help you answer:

Is this person a PEP (or linked to a PEP)?
Do they appear on sanctions or watchlists?
Do we need enhanced due diligence before onboarding or transacting?

You run these checks as part of a broader FICA KYC flow on verifynow.co.za, alongside identity verification and customer profiling.

Bold step-by-step: How to run an AML PEP check with VerifyNow

Capture customer details
Collect the minimum required data for screening (e.g., full name, DOB, ID/passport number where applicable). Use data minimisation—only what you need.
Verify identity first (KYC foundation)
Identity verification reduces false matches and improves screening accuracy. In practice, verified identity data makes PEP screening more reliable.
Run the AML PEP screening
VerifyNow screens the customer and returns potential matches and risk indicators for review. You can configure your internal rules for:
- Auto-clear (low risk, no matches)
- Escalate (possible match / higher-risk profile)
- Block/decline (confirmed high-risk or prohibited relationship)
Review potential matches (human-in-the-loop)
For any “possible match,” your compliance team should validate:
- Name similarity and aliases
- Date of birth / nationality alignment
- Role/position relevance
- Geography and known connections
Use active voice decisions: clear, escalate, decline, and record why.
Apply risk-based due diligence If the customer is a PEP (or linked), apply EDD, such as:
- Source of funds / source of wealth checks
- Senior management approval
- Transaction limits or monitoring triggers
- More frequent review cycles
Store an audit trail Keep evidence of:
- Screening result
- Match review notes
- Decision outcome and approver
- Ongoing monitoring actions
This is where VerifyNow helps you stay consistent and audit-ready.

Bold table: Example outcomes and what to do next

Screening Outcome	Risk Level	Recommended Action
No match found	Low	Proceed with standard FICA KYC and keep records
Possible match	Medium	Escalate for manual review; request supporting info
Confirmed PEP	High	Apply EDD, obtain approval, monitor closely
Sanctions/watchlist concern	Critical	Pause onboarding/transactions; follow internal escalation and legal guidance

Important compliance note
Don’t treat “PEP” as an automatic rejection. Treat it as a trigger for enhanced controls and documented decision-making.

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

3) How to build a risk-based AML programme around VerifyNow (cross-industry)

Bold: Set your risk rules before you onboard

PEP screening works best when it’s tied to a clear risk model. Define what “high risk” means for your business, such as:

Cross-border customers or payments
Cash-intensive activity
High-value transactions
Complex ownership structures
Unusual behaviour or rapid changes in profile

Then map those risks to actions (EDD, management approval, monitoring frequency).

Bold: Combine PEP screening with ongoing monitoring

A customer can become a PEP after onboarding, or their risk profile can change. Build an ongoing monitoring routine that fits your industry:

Trigger re-screening when:
- Customer details change (name, address, nationality)
- Transaction patterns shift
- Ownership/beneficial ownership changes
Schedule periodic reviews for higher-risk categories

Bold: Make POPIA part of your AML process (not an afterthought)

Because screening involves personal data, you should align with POPIA requirements:

Purpose limitation: screen only for legitimate compliance purposes
Security safeguards: restrict access, encrypt, and log actions
Retention: keep records for required periods, then dispose securely
Operator management: manage third-party access and contracts

Also ensure you have a data breach response plan. Regulators currently expect timely incident handling and breach reporting when required. The Information Regulator has strengthened processes via its eServices Portal, and organisations should be ready to respond quickly and consistently.

Important compliance note
POPIA enforcement can include administrative fines up to ZAR 10 million and other consequences. Build security and reporting workflows now, not after an incident.

Useful official sources:

Bold: Document everything (policies, SOPs, and evidence)

Across industries—fintech, property, legal, insurance, marketplaces, NGOs—the winning approach is the same: repeatable SOPs and a clean audit trail.

Include:

AML policy + risk assessment
PEP/sanctions screening SOP
EDD checklist
Escalation and approval matrix
Training logs and refresher cadence

4) How to reduce false positives and speed up PEP reviews with VerifyNow

Bold: Use better data upfront

False positives happen when the input data is weak. Improve match quality by capturing:

Full legal names (and known aliases where relevant)
Date of birth
Nationality / country of residence
ID/passport number (where applicable)

Use inline validation rules and avoid “free text chaos.” Even small improvements reduce manual review time.

Bold: Create a consistent match-review checklist

When VerifyNow flags a possible match, your team should follow the same checklist every time:

Does the match align on DOB and country?
Is the role actually a prominent public function?
Is the person a family member or close associate?
Is the risk current or historical?
What’s the customer’s expected activity vs observed activity?

Write your conclusion in a clear format, e.g. Cleared - mismatch on DOB and country or EDD required - confirmed PEP role.

Bold: Automate the “easy” decisions, escalate the rest

To keep onboarding smooth, many organisations:

Auto-clear low-risk, no-match results ✅
Auto-escalate anything ambiguous
Require senior approval for confirmed PEPs

This keeps your customer experience fast while protecting your business.

Bold: Train teams to speak “risk”

PEP screening isn’t just a compliance function—it’s operational. Train frontline and ops teams to:

Identify red flags
Avoid tipping off customers (where relevant)
Escalate early rather than “push through” risky cases

Important compliance note
Your best defence in an audit is not perfection—it’s consistent processes, documented decisions, and evidence that you applied a risk-based approach.

FAQ: VerifyNow AML PEP screening in South Africa

Bold: Is PEP screening mandatory under FICA?

FICA requires a risk-based approach to managing AML risk. PEP screening is a common and practical control to identify higher-risk relationships and apply EDD where needed.

Bold: Does a PEP match mean we must reject the customer?

Not automatically. A PEP status typically means enhanced due diligence, stronger monitoring, and documented approvals—unless your internal policy or legal advice requires refusal.

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

Use a blend of:

Event-based re-screening (profile changes, unusual activity)
Periodic reviews for higher-risk customers
Your policy should define the cadence and triggers.

Bold: How does POPIA affect AML screening and recordkeeping?

You must process personal information lawfully, securely, and transparently. You also need a breach response plan and should be prepared to use regulator channels (including the eServices Portal) if reporting is required. POPIA penalties can reach ZAR 10 million in certain cases.

Bold: What records should we keep for an AML PEP check?

Keep:

Screening result and timestamp
Match review notes and supporting evidence
Decision outcome and approver
EDD documents (if applicable)
Monitoring actions and follow-ups

Get Started with VerifyNow Today

If you want a repeatable “How to:” AML PEP workflow that supports FICA, KYC, and POPIA-aligned governance, build it on VerifyNow.

Benefits of signing up:

Faster onboarding with structured AML PEP screening
Risk-based workflows for escalation, EDD, and approvals
Audit-ready records to support compliance reviews
Consistent customer experience across teams and branches
Stronger POPIA alignment with better process control and accountability