AML & CFT Frequently asked questions

AML & KYC practical knowledge and CDD procedure templates

In this section you will find a set of knowledge connected with money laundering and terrorist financing, compliance, risk-based Customer Due Diligence (CDD) and PEP screening. For a quick tool-specific FAQ, see the Free PEP Check page.

Need a quick check right now? Run our free online PEP check tool (first and last name, no account required).

The main objective of the fourth EU directive on counteracting money laundering was to counteract criminal activity that may harm the internal market of the Union and expose the financial sector to damage. It imposes obligations on institutions that store and transfer money: banks, investment, insurance and leasing companies, factoring companies, payment operators, currency exchange offices, legal advisors, notaries and others.

Find out more about the AML 4th Directive
The basic act is The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (2017 No. 692). It was prepared along the guidelines of the fourth EU AML directive and remains in force in the United Kingdom. The British authorities have confirmed that AML law will not be withdrawn despite leaving the European Union.

Find out more about UK AML Regulations
A Politically Exposed Person (PEP) is an individual entrusted with a prominent public function, such as a head of state, a minister, a member of parliament, a senior judge, an ambassador or a senior military officer. Because of their position, PEPs present a higher risk of involvement in bribery, corruption and money laundering under international AML frameworks.
A free PEP check tool screens the name you enter against public sanction registers, government directories and global PEP databases in real time to detect potential matches. It is designed for a quick preliminary check. You can run one on our Free PEP Check page, with no account required.
Screen clients at onboarding and then on an ongoing basis. The frequency should be risk-based: higher-risk clients, including PEPs, generally require continuous or at least regular monitoring, and you should re-screen whenever a client's circumstances change. Automated ongoing monitoring is available through HyperFlow.
Customer Due Diligence (CDD) is the standard process of identifying and verifying a client. Enhanced Due Diligence (EDD) is a stricter set of measures applied to higher-risk clients such as PEPs. It requires additional information, verification of source of wealth and funds, and senior management sign-off.
The Sixth Anti-Money Laundering Directive (6AMLD) is EU legislation that harmonises the definition of money laundering and 22 predicate offences, and introduces tougher harmonised penalties for both companies and individuals across member states.
Yes. Screening only the individual is not enough. Relatives and close associates (RCA) must also be screened, because AML rules treat them as higher risk when they are connected to a politician.
PEP screening flags an individual who holds a prominent public function and therefore carries higher bribery and corruption risk. Sanctions screening checks whether a person or entity is subject to legal restrictions such as an asset freeze or a prohibition on dealing. Both are required as part of a complete screening programme.
A PEP match does not mean you must refuse service. You must apply Enhanced Due Diligence (EDD), verify the source of wealth (SoW) and the source of funds (SoF), and obtain senior management approval before proceeding.
Yes, we offer a query history module as an add-on. It lets you view and export to CSV (spreadsheet / Excel) all completed PEP queries, including the query contents, the PEP check result, a time stamp and the user who made the query. It covers both web application and API queries, and is billed as a monthly, quarterly or annual subscription. The price is available on the HyperFlow.eu website.

Need a quick check right now? Run our free online PEP check tool (first and last name, no account required).