Managing risk and compliance throughout the customer lifecycle requires timely and in-depth insights
To control risk, prevent fraud and other financial crimes, and remain compliant with laws and regulations, being able to accurately identify and verify client identity is crucial.
Being able to validate customer identity and asses related risk, represents a significant amount of work at onboarding and for the whole duration of the relationship. Such analysis and monitoring, requires to analyze large amounts of information and detect anomalies or irregularities which might hide in the smallest details.
The enhanced customer due diligence required to validate customer identity, understand the nature of customer’s activities and assess associated risks, necessitates to also correlate current information against knowledge from past, similar, situations. The breadth and dept of information to collect and process is too important for analysts to be able to process manually and timely.
Financial institutions and credit brokers make use of Pandora Intelligence’s platform to prevent fraud, money laundering, financing of terrorism and other financial crimes.
After requesting opening of a corporate bank account, a new customer went through the KYC and KYB processes and got approved for being granted access to such service. After some suspicious activity raised attention on the case, analysts decided to revisit and reassess the profile, including the transactions performed via the bank account. After several days of collecting relevant information it came to light that this customer was a money mule and was laundering money through dummy organizations. Despite the volume of small incoming transactions and large outgoing transactions, monitoring rules weren’t triggered as it is a common transaction profile for companies, which was the purpose of opening a corporate account instead of a private one. After registering the bank account the customer opened similar accounts in other banks for the same dummy organization in order to spread and minimize the number of transactions on each bank account.
To guarantee a swift and risk-free onboarding, information from a broad range of sources is analyzed to validate the identity of new coming customers. Simultaneously the same process is applied to organization for which the account is requested (only relevant for corporate accounts). Both processes are part of one same and single case which determines the risk level of the customer. The case provides an overview of people, organizations stakeholders, their involvement and relation with specific activities, goods or other people, but also their presence in sanctions lists, their relation with PEPs, and more. Based on the automatically generated picture, the analyst can make its decisions. After being onboarded as customer, and based on the risk level, the customer profile can be proactively monitored for changes. Changes impacting the risk level of the customer will trigger an alert, supporting the analysts on prioritizing their work.