Invented by Mark Schiffer, chief scientist at Safe Banking Systems, SAFE Exposure Index offers a fully automated, daily process to rank the relative political and criminal importance of Politically Exposed Persons (PEPs) and other high-risk individuals in third-party databases. Calculating the exposure index involves a large-scale system of equations with millions of variables. Using social networks and link analysis, SAFE Exposure Index analyzes the relationship between PEPs or other high-risk individuals and their underlying attributes, information sources and related entities. It returns a ranked hierarchy of individuals in the database based on their potential risk. SAFE Exposure Indexâs systematic approach to identify, assess and quantify risk in large databases helps organizations improve their customer screening process.
âAdopting a risk-based strategy to prevent money laundering and other illicit activities is only effective if there is a reliable way to gauge risk,â said David Schiffer, president, Safe Banking Systems. âThe new era of big data has made existing methods of risk ranking obsolete. With its objective measure of exposure and accurate risk-ranking, SAFE Exposure Index provides the first line of defense in mitigating financial crime. It has been a major factor in the success of our product offerings. Receiving a patent for SAFE Exposure Index further validates the effectiveness of this unique solution.â
To comply with anti-money laundering regulations such as Know Your Customer (KYC) and Enhanced Due Diligence (EDD), institutions are required to screen clients against government and commercial watchlists of PEPs and other high-risk entities. This due diligence measure is intended to identify individuals and companies in a customer database that pose the greatest risk. Due to imperfect data, different naming conventions and a host of other factors, the screening process typically results in a âmountain of alerts,â including many false positives. SAFE Exposure Index combined with SAFE Strength Index, a probabilistic alert scoring framework also developed by Schiffer, reduces the number of alerts by identifying the highest risk and most likely to-be-true matches in a customer database. These solutions streamline investigation and provide a well-defined, audit-ready process.
SAFE Exposure Index and SAFE Strength Index are part of SAFE Advanced SolutionsÂ®, an integrated system that includes products for list management, entity resolution and research, investigation and reporting.