âRegulations such as the Third EU Money Laundering Directive, Sections 312 and 326 of the USA PATRIOT Act, and Australiaâs new AML/CTF Bill continue to put pressure on financial institutions to take a risk-based approach to their customer due diligence process, and to ensure Know Your Customer (KYC) requirements are effectively addressed,â said Sebastian Kuntz, CEO of NetEconomy. âNetEconomyâs expanded capabilities take CDD to the next level â providing our customers with new and innovative capabilities to identify and monitor customers with high-risk profiles and high-risk behavior in a dynamic way.â
NetEconomyâs key capabilities for CDD include:
â¢ Customizable Onboarding Risk Scoring speeds account opening of low risk customers, requires more detailed information for high-risk customers, and calculates a risk score based on key risk variables such as country of residence, Politically Exposed Persons (PEP) status, business type or personal profile.
â¢ Ongoing Dynamic Risk Scoring updates risk scores as behavior deviates from the expected behavior obtained at account opening. Actual behavior is continually compared to expected behavior so that risk scores can be adjusted and alerts generated if a significant deviation occurs.
â¢ Ongoing Monitoring of all transaction types is performed on a risk-sensitive basis, with increased scrutiny of high-risk customers, accounts and transactions. ERASE uses multiple detection techniques including pre-built detection scenarios, behavior profiling, filtering, peer group analysis, link analysis and static risk factor analysis (e.g., on PEP status, High/Medium/Low risk classification, country of nationality/residence/birth, and account type). ERASE uniquely combines these approaches to assess the risk and determine whether or not an alert should be generated.
â¢ Advanced List Filtering in batch and in real-time checks new and existing customers (and counterparties) against various commercial and government watch lists, to find matches with PEPs, known or suspected money launderers and terrorists, or customers located in high-risk jurisdictions. ERASE can also check originators and beneficiaries in wire transfers such as SWIFT messages in real time.
â¢ Unique Enterprise Delivery Methodology delivered by a team of experts, provides a customer-tested risk-based approach to identify the greatest threats and vulnerabilities to a financial institution customizing workflow and risks areas to deliver the very best results.
Expanding the ERASE Platform for Enhanced Customer Due Diligence
With ERASEâs added capabilities for risk scoring and enhanced due diligence on high risk customers, financial institutions will improve their ability to mitigate risk across their organization. ERASE monitors customers and transactions, and alerts its users to the appearance of suspicious activity. Once alerts have been generated, a step-by-step customizable workflow with built-in case management drives users through investigation, case tracking and reporting within one fully-integrated end-to-end environment.