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
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:
Finchecker KYC Solution allows you to save and print all of your screening results, to ensure that all your KYC efforts have been documented.
Finchecker KYC Solution allows you to store your screening results with the correct dates and signatures, to ensure you meet your audit requirements.
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.