We just purchased a step-up to our platform for Red Flag monitoring.The software referred to 'creating a PEP profile'. Does anyone know what this is supposed to entail? We do not have any PEPs, but we should have 'something' in case we ever do.

It refers to PEP due diligence. Page 266 of the BSA Exam manual says:

"Commensurate with the identified level of risk, due diligence procedures should include, but are not necessarily limited to, the following:

Identify the accountholder and beneficial owner.

Seek information directly from the individual regarding possible PEP status.

Identify the accountholder’s country of residence.

Obtain information regarding employment or other sources of funds.

Check references, as appropriate, to determine whether the individual is or has been a PEP.

Identify the source of wealth.

Obtain information on immediate family members or close associates having transaction authority over the account.

Determine the purpose of the account and the expected volume and nature of account activity.

Make reasonable efforts to review public sources of information. These sources will vary depending upon each situation; however, banks should check the accountholder against reasonably accessible public databases (e.g., government databases, major news publications, free commercial databases available on the Internet, and fee-based databases, as appropriate)."