The newly implemented solution is aimed at enabling financial institutions to simplify periodic KYC review processes and reduce costs through means of automation.
Fenergo Smart Review automates the continuous monitoring for KYC compliance of client profiles by identifying all changes to relevant entity data, transactions, and anti-money laundering (AML) screening, and assessing the risk impact of said changes to client circumstances, while determining relevancy and materiality in an automatic manner. Through this, lower-risk cases are enabled to be processed straight through, whereas higher-risk cases are prioritized by an analyst for increased due diligence. In their press release, Fenergo exemplified two situations that would require automatic assessment for determining risk exposure and whether human intervention is required: ‘a change in beneficial ownership to a sanctioned individual, or the appointment of a new exec deemed to be a politically exposed person (PEP)’.
To be aligned with global and national KYC regulatory requirements, financial institutions are mandated to periodically review each customer relationship. In a recent study, Fenergo found that more than half of financial institutions spend between 61 and 150 days when it comes to KYC client reviews, the average cost of a single review being USD 2,200. Fenergo officials have stated that for a bank with an extensive client-base, the requirement of completing ongoing KYC reviews manually represents a big and costly operational burden, especially in cases where genuine key risk factor changes are minimal. With the introduction of Fenergo Smart Review, the company is looking to help financial institutions improve the KYC review process through means of automation of the continuous monitoring of clients, ultimately hoping to improve operational efficiency, reduce operating costs, and regulatory risk.
Fenergo Smart Review is globally available to all financial institutions and is a modular addition to Fenergo’s Software as a Service (SaaS) CLM offering and comes already pre-configured with integrations to leading data and screening providers.
In May 2022, the company launched their FinCrime Risk solution aimed at centralising and automating risk assessment processes and simplifying AML compliance. The implementation of this solution followed the findings from research conducted by Aite Novarica Group which showed that 38% of financial institutions were using two or more systems for identifying risk. With FinCrime Risk, Fenergo was looking to enable firms to consolidate risk assessment into a central platform and digitalise manual processes.
In April 2022, Fenergo acquired Sentinels, an AML company based on AI technology, an acquisition believed to strengthen the company’s ability of delivering end-to-end SaaS based-CLM with smart transaction monitoring to financial institutions. Additionally, the Sentinels purchase enabled Fenergo’s clients to combine KYC profiles with client behavioural data for continuous KYC monitoring.
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