AML Compliance & Customer Due Diligence Re-defining the Standard – Agile Optimization in AML Compliance

Customer identity or Knowing Your Customer is the foundation of every risk scoring strategy. In recent years, increased regulatory requirements have forced financial institutions to expend significant resources to address Customer Due Diligence controls. RiskShield is using the same smart technology for risk scoring to increase efficiency among compliance teams and determine the right due diligence process for accepting new customers. Based on the scoring results, RiskShield can quickly and accurately identify customers depending on their risk factors and then automatically segment them.

• Acceptance and risk scoring of new customers: Real-time risk scoring based on received on-boarding input, instant reference checking of previous on-boarding (phone numbers, addresses, email, etc.)
• Categorize customer in pre-defined risk levels and/or business profiles (e.g. low, medium high).
• Auto-trigger additional processes for e.g. enhanced due diligence.
• Real-time screening against PEP lists and Terrorist Financing & Sanction lists:
• Ongoing due diligence: continuously monitoring of transactions, accounts and customer behavior, and automatically re-evaluating risk classifications based on aggregated risk scoring of customers.

RiskShield’s AML solution is a flexible and intelligent monitoring platform that combines software technologies such as machine-learning, fuzzy logic, dynamic profiling and social network detection to closely monitor the behavior of customer accounts and transactions.

Additionally, RiskShield offers a set of out-of-the-box rules and scenarios to fight money laundering. You can also build own scenarios based on the arising trends e.g. cryptocurrencies, crowd-funding, charities, online gambling. At the same time, it gives a bank the possibility to adjust the rules based on their own risk management requirements.

• The behavior of customers is constantly monitored based on events such as deposits, withdraws, transfers and non-financial events (address change, new PIN code)
• Unusual behavior is detected using several techniques for example; the customer’s historical data, behavior profile, risk category and peer group analysis.
• Advanced monitoring e.g. pattern recognition (structuring/smurfing), network detection (money mules) and data visualization for trend analysis.

Regulators are paying more attention to the quality of screening. RiskShield offers a single solution to screen your customer information and payment messages against various sanction, and embargo lists, automatically and in batch or real-time mode. Whenever a match with a listed entity occurs, the system automatically "flag" the transaction and report the transaction to the designated person for further investigation. RiskShield can process different types of lists from regulatory bodies like OFAC, EU, and UN, but also from in-house lists and lists provided by leading third-party list content vendors. RiskShield offers:

• Fast and reliable watch list screening technology for monitoring real-time payment transactions and customer databases.
• Flexible interfaces to easily integrate watch list in various formats (e.g. XML and CSV), in-house watch lists and from 3rd party content providers.
• Powerful fuzzy name matching technique to check a name or entity in a watch list using various type of spellings e.g. “phonetic” spelled similarity.
• False positive reduction with an auto feedback loop, consulting historical data combining with RiskShield advanced rule editor.
• Workflow automation triggering different actions for different lists (PEPs, Sanctioned, terrorist financing, law enforcement).