23rd December 2019
Special Interest Persons (SIPs) And Special Interest Entities (SIEs)
What Are Special Interest Persons (SIPs)?
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. Indeed, SIPs may be included on unofficial industry watchlists and should be considered high risk by the firms that do business with them. The types of activity which might warrant SIP status include:
- Financial crimes, such as money laundering, fraud, tax evasion or theft
- Terrorism or the financing of terrorism
- Trafficking in banned goods and services, such as narcotics or weapons, or human trafficking
- Corruption, bribery or extortion
- Organized crime
- War crimes
Like PEPs, firms doing business with SIPs should consider the issue of relatives and close associates (RCAs) when determining the level of risk they present. 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.
Identifying SIPs and SIEs requires the analysis of large amounts of data, including adverse media reports and sanctions lists. Completing that process manually involves significant administrative effort and includes the risk of human error.
ComplyAdvantage helps firms avoid these problems by implementing a smart AML solution, tailored to their unique risk environment. Our solution provides ongoing, automated screening and monitoring capabilities. We continually monitor sanctions lists and produce adverse media and PEP status reports as well. These tools help you identify SIPs and SIEs quickly and efficiently and, therefore, significantly enhance your compliance performance.