KYC screening

The main goal of know your customer (KYC) screening is to build a risk profile of your Clients.

Our KYC Screening tool helps to identify if your Clients are:

Politically exposed persons (PEPs)
In any of the global regulatory and law enforcement lists
Subject to national and international sanctions
State owned and state invested enterprises
Convicted or suspected criminals
Mentioned in any negative media
A reputational risk to your Company, for any other reason
The objective is to discover if your Clients are directly or indirectly linked to money laundering, terrorist financing, corruption, bribery and legal cases concerning the above or any other forms of financial crime. Once you have discovered if they are, you can decide on how to protect your business in a legal manner, whether by severing business relationships with them or taking an appropriate pro-active measure, such as conducting an enhanced due diligence (EDD) or submitting a suspicious activity report (SAR), depending on the procedures of your Company and the appropriate Laws and Regulations.

Many companies, unfortunately, make the mistake of failing to realise that screening is only effective if it is a risk-based approach, which means analysing and seeking to understand which money laundering or terrorist financing risks can affect your Company, and responding in an appropriate manner. A risk-based approach means that the individuals or entities, that carry the highest risk level, are assigned the most resources – enhanced investigation, assessments that are more regular, etc.

AML process pieces, which are key to an effective KYC mechanism:

Well-trained staff

In most jurisdictions, financial companies are legally obliged to keep records of all their compliance-related activities. Screening results, as well as all of the decisions made based on them, must be documented. Minutes from Client meetings also have to be included, if these occur. Whilst paper copies are prone to go missing, fade over time and are not reliable means of information storage, electronic files are a great way to ensure that all KYC-related information is effectively stored on a durable medium.

Finchecker KYC Solution allows you to save and print all of your screening results, to ensure that all your KYC efforts have been documented.

Audit trail

If not the regulator, an auditor will definitely be willing to analyse all of your processes and conducted KYC screening results in relation to your existing Clients. It is important to keep all of your Policies and Procedures up to date with the current legislation in force, in order to ensure that at any given moment, if the evidence supporting the performed due diligence is requested, it can be provided in the shortest amount of time allowed by the Law.

Finchecker KYC Solution allows you to store your screening results with the correct dates and signatures, to ensure you meet your audit requirements.

Resource allocation

A risk-based approach is a smart way of ensuring that all of your Company's resources are allocated according to the risk that each of your Company's activities face.

Over-screening can seriously weaken your Compliance system. KYC screening at many companies, including large financial corporations, is not performed by Compliance professionals, but by relatively junior staff, who may not be experienced enough to interpret complex KYC results.

Over-screening is also cost-ineffective: interpreting the results for each Client can require a large amount of time and ultimately drain staff resources. False positives, a common consequence of many screening solutions on the market, i.e. the ones using unnecessarily large PEP databases, which include second cousins and nephews of every local politician in Mauritius, are a particular problem. Over-screening drains staff resources and can undermine Compliance as a whole.

Finchecker KYC Solution reduces false positives by up to 96% compared to our leading competitors.