AML Compliance takes majority of the time of the Compliance Teams in the Banks. Money Laundering is a global play of the dirty money and identifying and reporting these transactions is one of the major challenges of the banking sector. From benign tax-avoided income to terrorist finances, compliance officers face numerous challenges.
The best way to mitigate risk is to detect and manage problematic accounts before they become a risk. Performing a comprehensive identity verification check reduces risk from fraud, risk of breaking compliance rules, and risk from dealing with dirty money. Regtech partner plays a vital role in real-time monitoring of the comprehensive identity checks.
Riskpro which has built its APIs on the basis of the database of heightened risk entities helps the financial institutions in dealing with the AML Risk.
Stopping the entry of the bad customers is important because once a bad customer passes the initial checks, they are past the gate and can start testing your anti-fraud systems. Fraudsters are becoming technology savvy. Money launderers and terrorists are identifying weak links in your Know Your Customer processes to help them hide the true source of funds, and their nexus with the heightened risk individuals such as terrorists or politicians. Regtech companies such as Riskpro, offers the nexus technologies which help in building the nexus between various heightened risk entities play a significant role in understanding the transactions in detail. By blocking access to those that want to bypass your safeguards in the first place, your prevention systems will be more robust and secure.
This includes an exhaustive AML screening program needs to gather data from diverse government sources, international regulators and law enforcement agencies.
Biznexxus which is the name of the database designed by Riskpro Technology has aggregated the data from more than 27 different public domain sources and acts as one of the first level of defense for the Bankers.
Database checks for known or suspected entities and individuals who are associated with money laundering, terrorism, financial fraud, arms proliferation, drug trafficking or PEPs (Politically Exposed Persons).
For banks and financial institutions, signing up new customers with enhanced due diligence methods is not enough, continued monitoring is critical after initial sign up. Banks and financial institutions must monitor activity to ensure fraud is not committed, or that money laundering or terrorist financing funds enter their system. Regtech companies help the banks in continuous monitoring of the transactions in the heightened risk accounts.