Beyond the list: Rethinking PEP and SOE screening for real-world risk
By
Ladanna James
Head of Marketing and Partnerships
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Beyond the list: Rethinking PEP and SOE screening for real-world risk
The PEP problem: over-discussed, under-delivered
Let’s be honest: politically exposed persons (PEPs) are talked about endlessly, but rarely tackled effectively. In the compliance world, they remain one of the most over-discussed, under-delivered categories. Verifying PEPs is still a slow, error-prone grind: fragmented data, inconsistent global standards, and heavy manual effort bog down the process.
The result? Operational inefficiencies, delayed onboarding, and elevated compliance risk. And while most platforms claim to “cover” PEPs, few offer the depth or agility needed to keep pace with today’s risk landscape.
SOEs: The overlooked risk factor in compliance
State-owned enterprises (SOEs) are often treated as an afterthought when in reality, they can pose even greater reputational and corruption risk. In jurisdictions where political influence is deeply woven into commercial activity, SOEs become high-stakes entities. Their leadership often straddles two worlds: political power and control over public assets. That dual status amplifies exposure to bribery, favoritism, and undue influence.
Yet most compliance tools lump SOEs into generic categories, missing the nuance and complexity that define their risk profile.
Legacy screening tools are failing us
Everyone obsesses over lists. Few ask what’s actually relevant. Legacy screening tools rely on static databases and outdated affiliations. They’re built for a slower world; one where risk didn’t evolve by the hour. The consequences?
Why this matters more than ever
Regulators are tightening the screws. The Financial Action Task Force (FATF) continues to stress that PEPs can abuse their positions for money laundering, bribery, and corruption. Enhanced due diligence isn’t optional, it’s expected.
Meanwhile, corruption scandals are crossing borders, and clients—from banks to procurement teams—are demanding solutions that move as fast as the risk does. Static screening no longer cuts it.
The hidden nexus: PEPs, SOEs, and reputational risk
The intersection of SOEs, PEPs, and reputational risk forms a complex and often underappreciated nexus in compliance and due diligence.
Senior officials in SOEs often qualify as PEPs due to their political influence and control over public assets. This dual status magnifies financial, political, and reputational risks. When scandals erupt, the fallout can extend to:
In today’s interconnected world, reputational damage spreads fast.
Introducing Valital’s real-time political risk intelligence
Forget outdated lists and manual workflows. Valital’s newly launched PEP and SOE feature delivers real-time political risk intelligence by continuously scanning, analyzing, and contextualizing global data.
The moment a search is triggered, Valital’s proprietary AI models activate across the web, scouring a wide range of open-source intelligence to surface relevant insight.
Traditional PEP lists don’t pinpoint misconducts, Valital will. Blended with our real-time adverse media analysis, compliance teams now gain dynamic insights to enhance risk assessments, close compliance gaps, and strengthen due diligence.
Powered by Gen AI, Valital offers:
The future of compliance Is dynamic
The next generation of PEP/SOE screening isn’t about checking a box. It’s about knowing who you’re really doing business with.
Static lists don’t catch dynamic risk. Valital’s real-time intelligence gives you the clarity to act, the context to understand, and the control to protect what matters.
It’s time to move beyond the list.