![]() How ComplyAdvantage Can Help Identify Special Interest Persons Like special interest persons, SIEs may be identified through adverse media checks or sanctions screening, or they may feature on certain industry watchlists. Firms should consider SIEs at higher risk of money laundering as a result of their involvement or suspected involvement in serious financial or organized crimes. Special interest entities pose the same AML challenge as SIPs. Although it is not illegal to do business with SIPs, firms that operate with a high level of internal AML control, or that are concerned about reputational risk, may need to know about this status when entering into a new customer relationship. Like PEPs, firms doing business with a special interest person should consider the issue of relatives and close associates (RCAs) when determining the level of risk they present. Trafficking in banned goods and services, such as narcotics or weapons, or human trafficking.Terrorism or the financing of terrorism.Financial crimes, such as money laundering, fraud, tax evasion or theft.The types of activity which might warrant SIP status include: Indeed, SIPs may be included on unofficial industry watchlists and should be considered high risk by the firms that do business with them. ![]() While they do not necessarily match the risk profile of PEPs or warrant inclusion on an official sanctions list compiled by governmental authorities, SIPs may be identified using intelligence gathered during those types of screening processes. More specifically, SIPs are likely to be high-profile people who have been convicted of serious financial or organized crimes or are (or have been) the subject of an investigation into those types of crimes. Who is Considered a Special Interest Person (SIP)?Ī special interest person is similar to a politically exposed person (PEP) and sanctions list individuals because they present an elevated risk of money laundering - in their case, however, this risk is a result of their involvement, or suspected involvement, in crime. In certain circumstances, those high-risk customers are known as special interest persons (SIPs) or special interest entities (SIEs).Īfter verifying the identities of their customers during customer due diligence, firms must perform certain important AML processes, including screening to see if the customer appears on official sanctions lists or if they are a politically exposed person (PEP) and vulnerable to money laundering as a result of their political status. That information might include the customer’s political status, references to them in negative news media, their personal or professional connections or their involvement in criminal activity. What is a Special Interest Person (SIP) And Special Interest Entity (SIE)?Īs part of customer due diligence, financial institutions not only work to verify the identities of their customers but examine contextual information in order to establish whether those customers present a higher money laundering risk.
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