Optimizing PEP Screening Thresholds for Your Risk Appetite

We analyzed 10M+ PEP screening results to find the threshold sweet spot. Here's the data behind why 0.75 is our recommended default - and when to go higher.

Background

Optimizing PEP Screening Thresholds for Your Risk Appetite sits at the intersection of regulation, engineering and operations. The regulatory bar keeps rising while teams are asked to do more with the same headcount, which is exactly where clear process and good tooling pay off.

A practical approach

1. Start with the data model. Clean entity resolution and well-defined risk thresholds prevent most downstream pain.
2. Measure false positives. Track precision and analyst throughput so thresholds are tuned with evidence rather than guesswork.
3. Automate the audit trail. Every decision should be reconstructable months later for a regulator or auditor.

How on8.ai fits

on8.ai provides the screening, monitoring and reporting primitives so your team can focus on policy rather than plumbing: configurable rules, a tamper-evident audit trail, and exports that are ready for your regulator.

Key takeaways

• Treat compliance as a continuous process, not a one-off project.
• Tune thresholds with data, and review them at least quarterly.
• Keep everything auditable by default.