Dispositioning PEPs: Verifying and Documenting Politically Exposed Persons (PEPs)
Introduction
Welcome to Strise’s **Dispositioning PEPs** feature—your essential tool for making informed decisions on flagged Politically Exposed Persons (PEPs) and documenting the rationale behind each decision. This guide will walk you through the purpose and steps of this feature, helping ensure regulatory compliance and a streamlined review process.
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What is Dispositioning?
Dispositioning is the step that follows initial PEP screening, where flagged entities are reviewed, verified, and documented as either a confirmed PEP or a false positive. This decision-making process is vital to:
1. Reduce false positives by clarifying true PEPs.
2. Enhance documentation for compliance and audit purposes.
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Why Use Dispositioning PEPs?
In the world of AML (Anti-Money Laundering), regulatory standards often demand both transparency and accuracy in how organizations handle PEP screening. Strise’s Dispositioning feature is designed to:
Give you all available data on a PEP match (such as name, country, gender, and birthdate) to make an informed choice.
Offer a **step-by-step dispositioning process** for documenting each decision, creating a thorough audit trail.
Who Should Use This?
This feature is particularly useful for compliance officers, risk analysts, and AML professionals within financial institutions. It is especially relevant for organizations in the UK, where regulatory demands make the dispositioning process essential.
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How Dispositioning Works
1. Review the Data: When a PEP match is flagged, all relevant data (including fuzzy name matches) will be visible to help you assess whether the entity is a true PEP.
2. Confirm or Reject the PEP Status: Based on the data, you can either confirm the match or mark it as a false positive. This decision will be recorded and visible in the Review section and in any exported documents.
3. Document Your Decision: A decision log enables you to annotate your choice with any supporting details. This is critical for regulatory audits and internal reviews.
4. System Suggestions: If the match percentage (based on name, gender, country, birthdate, and birth year) exceeds 80%, the system will suggest a likely PEP. You can review and confirm or override this suggestion.
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Understanding Match Percentage
The match percentage reflects the similarity score between the flagged entity and the potential PEP based on the following criteria:
Name similarity(0-100)
Gender match (0 or 100)
Country match (0 or 100)
Birthdate and birth year (weighted twice if both date and year match)
> Note: This score is calculated by averaging these components, and a score above 80% will trigger a “system suggested true” status.
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Key Features and Actions
Disposition CTA
Each PEP hit includes a prominent "Disposition" call-to-action, in the form of a pencil icon, guiding you to the decision modal where you can review and confirm or reject the PEP match.
Audit Trail and Change Log
For added transparency, you can access a record of previous dispositions, including user name, date, and timestamp, by hovering over the decision. This log can be accessed if needed for audit purposes.
Tooltips for Enhanced Guidance
Hovering over specific elements (like the match percentage or empty data fields) will display tooltips that clarify the meaning of these metrics or the reason behind any missing data. Tooltips are accessible after clicking the pencil icon, next to PEPs.
Note: this currently only shows up if a PEP match has potential other matches.
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Dispositioning Outcome
Once you’ve confirmed or rejected a PEP status, your decision will be documented and visible:
In-App: In the Review section, with clear indications of system-suggested and user-confirmed PEP statuses.
In PDF Reports: Your final disposition will appear on exported reports to ensure transparency.
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Future Enhancements to this feature
Strise continues to enhance the Dispositioning feature. In the future, you may expect:
An in-app change log.
Notification options around changes in PEP statuses.
Configurable matching algorithms for specific markets or regions.
For further assistance or questions on using the Dispositioning feature, don’t hesitate to contact our support team.
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