Guides

AML, Sanctions & PEP Screening in Insurance

Insurers are obligated entities under AML law. That means verifying who the customer is (KYC), screening them against sanctions and politically-exposed-person (PEP) lists at onboarding, and monitoring for suspicious activity thereafter. Automated screening makes this consistent and auditable at scale.

Definition. Anti-money-laundering (AML) screening is the process of verifying customer identity (KYC) and checking customers against sanctions, PEP and watchlists to prevent the insurer being used to launder money.

KYC onboarding

Know Your Customer (KYC) establishes and verifies a customer's identity before a policy is issued. Captured identity data feeds directly into screening, so onboarding and compliance are one flow rather than two.

Sanctions and PEP screening

Sanctions screening checks customers against government and international sanctions lists. PEP screening flags politically exposed persons who warrant enhanced due diligence. Matches are risk-rated and routed to compliance for a decision, with the outcome recorded for audit.

Ongoing monitoring

Re-screening as watchlists change
Transaction and behaviour monitoring
Case management for flagged customers
Auditable records for the regulator

Frequently asked questions

What is AML screening?

AML screening verifies customer identity (KYC) and checks customers against sanctions, PEP and watchlists to prevent the insurer being used for money laundering.

What is sanctions screening?

Sanctions screening checks customers and counterparties against government and international sanctions lists, flagging matches for compliance review before business proceeds.

What is a PEP?

A politically exposed person (PEP) holds a prominent public position that carries higher corruption and money-laundering risk, so they warrant enhanced due diligence.

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Last reviewed: 2026-07-29