We’ve Launched Enhanced AML Screening Tooling

Posted by: 
Donald Gillies
Oct 11, 2016

At PassFort we’re obsessed with making life simpler and safer for the compliance professionals and businesses we partner with. That’s why today we are excited to announce the release of our improved False Positive and Ongoing Monitoring tools for AML screening stages within PassFort.

Why is This Important?

A report published by consulting firm Booz Allen Hamilton highlighted that today’s compliance analyst spends 90% of their time information handling.
Think about that. 90% of time spent collecting data from customers. Entering that data into multiple dashboards. Pulling the results together into a single file. Storing that data in multiple back offices systems. Keying it multiple times. Is that value add? Is that what compliance professionals study for? Why the average compliance salary in London is just under £50k per year? No.

Compliance professionals are expert decision-makers. They use their detailed understanding of complex regulatory frameworks and customer information to assess whether or not to move forward with a proposed business relationship.
Spending only 10% of compliance team time on decision-making is criminal. Not literally, granted, but it certainly helps criminals. We think this is wrong. Our goal is to increase the 10% of time compliance analysts currently spend on decision-making to 100%. We’ll do this by providing software frameworks and tooling which guarantee consistent and audit friendly decision-making processes.

I’m excited to announce the first set of tools we are making available to our clients to do just this. These tools specifically relate to the AML stages within PassFort CLM and will give our customers the confidence to focus more of their attention on decision-making.

How Is PassFort Improving Tools?

Firstly, it’s important to highlight what two issues we are helping our clients solve. There are two main problem areas these tools will enable improvements in:

  • False Positive Detection, Handling and Reduction
  • Ongoing Monitoring
  • Let’s take each separately…

1. False Positives

False positive, noun; a test result which wrongly indicates that a particular condition or attribute is present
The reason so many false positives are generated by existing AML systems is that contextual information is not used to qualify whether a match result should be shown to a compliance professional. This work is deemed to be most efficiently undertaken by human operatives.

We dispute this. This gives rise to a similar problem highlighted by Aesop in his well known Fable The Boy Who Cried Wolf. If you have a system which generates a lot of false alerts — you desensitise your compliance team to alerts generally. You therefore defeat the purpose of having alerts in the first place.

So what are we doing about it?

From the work we’ve done with customers they believe more alerts protect them from potential mistakes. But it works both ways. Too few false positives and you might miss an important match, too many false positives and you might not find the needle in the haystack.

The goal is to understand where there is increased risk around identity credentials but not negatively discriminate against or impact the end customer who is being on boarded.

Customisable Screening Logic
Working with existing clients we have implemented customisable PEPs and Sanctions screening logic that takes into account contextual information (such as date of birth, nationality and address) for customers where available. This allows us to prioritise any alerts generated in order of importance helping teams prioritise where they devote attention.

Automated False Positive Flags
This one sometimes raises alarm bells for experienced compliance professionals but hear us out! Using the above logic we can learn to mimic the actions of your compliance team. By understanding this behaviour we can generate automated false positive flags. Flags generated in such a way are at all times visible to the compliance professional and part of our detailed audit trails. This feature does not exist to make the decision for the compliance team but to help guide them to information that is most important in a consistent and audit friendly way.

Manual False Positive Flags
We’ve also built capability for compliance professionals to manually flag a PEP or Sanction match as being a false positive. In the event they do so the match moves from “Live Results” to “False Positives” section of the product and is then not resurfaced every time the customer file is re-screened or monitored.

2. Ongoing Monitoring

JMLSG ; 5 . 7 . 1 : Ongoing Monitoring of a business relationship includes ensuring that documents, data or information held by the firm are kept up to date.

A lot of firms have struggled to automate ongoing monitoring of customer data in the past. This is because technology has limited ongoing monitoring to manual batch processing (yuk) and supplier business models have made recursive checking of customer data prohibitively expensive. Plus, some firms don’t often have any processes in place to do so effectively. There is a failure in the operating model.

I’m excited to announce that all customers PassFort chooses to work with at this stage will have access to our added value ongoing monitoring features at no additional cost. So what are the features?

Real-time PEPs and Sanctions Ongoing Monitoring
We have implemented real-time screening of PEPs and Sanctions data to ensure compliance professionals using PassFort CLM can be sure at all times PEPs and Sanctions exposure across their customer portfolio is accurate.

Automated Screening of Aliases and Associated Individuals
PassFort CLM enables compliance professionals to build a contextual understanding about customers. That sometimes means understanding the network they are part of — be it family, friends or professional. That’s why we screen all aliases and associated individuals of the customer you are onboarding against PEPs and Sanctions lists as standard.

Document Expiry Ongoing Monitoring
PassFort CLM automatically tracks when documentation you have used to onboard a customer expires. You can automate the recollection and verification of this documentation or manually actions workflow tasks which are created.

PassFort CLM is a fully auditable compliance lifecycle management solution. We’re continuously looking to work with customers transforming the way they think about customer onboarding and risk assessment processes. Reach out to us at sales@passfort.com to learn how partnering with PassFort can enable your business to grow.

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