Velocity has integrated the mandatory PEP Declaration, AML Borrower Risk Assessment and Sanctions Screening into your application process.
PEP Declaration
In the online application, each borrower must now answer the question of whether they are a PEP, or Politically Exposed Person.
If they self-identify as a PEP, a series of additional mandatory questions will appear to help assess the risk level associated with the borrower’s PEP status.
A copy of their completed PEP Declaration will be sent to each borrower, as well as saved in the Conditions and Documents section of the application.
On a manual application, you can generate the PEP Declaration from the Conditions and Documents section.
1. Click Add/Upload Conditions.
2. There are three new forms available: the PEP Declaration, AML Risk Assessment, and AML Sanctions Screening. Select each of these conditions and click Add Condition, then click Close.
3. Expand the PEP Declaration and click Yes or No to identify whether each borrower is a PEP, then click Create PDF.
4. The PEP Declaration will need to be signed by your client. If you use DocuSign through Velocity, we’ve pre-templated the condition so all you have to do is click Send.
AML Risk Assessment
The AML Risk Assessment must be completed for each borrower in an application and should never be shared with the client or lender.
1. Expand the AML Risk Assessment condition.
2. Fill in the questionnaire by answering Yes or No, including any concerns, and identifying how you verified the client’s identity.
Check out our Electronic IDV video for more information.
3. Give your assessment of the client’s risk level and click Create PDF.
AML Sanctions Screening
This condition is automatically completed as soon as a credit bureau is pulled for your client.
If you do not pull a Credit Bureau, you can manually screen a client from the AML Sanctions Screening condition by clicking Screen beside each applicant’s name.
This process scans against Domestic and Foreign sanction lists and will flag individuals if there is a match.
Velocity will provide ongoing monitoring by continually scanning each client in compliance with the risk assessment guidelines.
If the client appears on a list during a subsequent scan, the agent on the deal, Broker Owner and Compliance officer will be notified. Your broker owner will be required to submit a report to FINTRAC.