LexisNexis Risk Solutions proposes financial crime compliance initiatives

The LexisNexis Risk Solutions True Cost of AML Compliance study of China, Hong Kong, Indonesia, Malaysia, Taiwan and Singapore found that 33% of anti-money laundering (AML) compliance costs are made up of watch list activities, including periodic screening, sanctions operations, and KYC processes. However, until now little innovation has occurred to disrupt the way that banks comply with these global regulations.

Companies can nowadays use digital identity information, such as location, behavior and threat intelligence in combination with physical identity information, to identify and understand the risks presented by a customer or prospect.

Name screening is necessary to adhere to global regulatory requirements and to protect enterprises from enforcement risk. Increasing demand for the use of machine learning and other artificial intelligence processes to drive next-generation economic sanctions and financial crime risk identification will allow companies to reach accurate match results with less human capital investment.

Illicit financiers, sanctions evaders, arms proliferators and human traffickers rarely use names that can be found on government watch lists or in adverse media. They fabricate or steal true names to avoid detection, and like fraudsters, they rarely limit themselves to one named account within an enterprise that they target. The use of digital identity data through innovative solutions to address economic sanctions and other financial crime risk has the potential to revolutionise the industrys approach to brand protection and compliance.

Through the analysis of hundreds of digital identity data points, as well as through the use of contributory databases and consortia, such as LexisNexis Risk Solutions’ acquisition of the ThreatMetrix Digital Identity Network, banks and non-bank corporates can identify enterprise risk in near real-time. This means that organizations can use fewer expensive and trained resources to accurately assess and control economic sanctions and other financial crime risks across their enterprise.