Intelligent KYC screening
“Compliance spending has to be used intelligently"
October 16, 2017
Making sure new and existing clients are not blacklisted criminals is vital work. It is also hugely costly. Sorting out the names and contact details of international clients in different languages is tricky, all the more so when using non-Latin script, or if data is entered incorrectly. We spoke to Cédric Iggiotti, Chief Analytics Officer of Logos IT Services about how both digital and personal support is needed.
“Compliance spending has to be used intelligently,” commented Mr Iggiotti. “The mass of data that has to be sorted through is overwhelming, so data analytics tools are required to help compliance staff focus their efforts,” he added. Their tool iDETECT uses algorithms and machine learning to generate an evolving, predictive model that takes an intelligent approach to identifying potential problems.
However, having powerful digital tools is only half the challenge. “We insist that not only do our developers and consultants fully understand the IT system, but they must be able to relate to compliance officers and the pain they feel on a daily basis,” Mr Iggiotti added. Before these tools can be used, they must be tailored to suit the resources and risk profile of each client. The way the tool is deployed must then evolve to suit changing circumstances.
Just because you have someone’s name and contact details doesn’t make it easy to find them on your client watch list. You might have a customer called “Richard”, but the blacklist could have them as “Rick”, “Ricky”, “Dick”, “Rik”, or “Rich”. Things get tougher still when dealing with script that compliance officers are not used to. Chinese, Arabic, and Cyrillic all need to be transcribed into Latin text, but standard conventions might not have been followed. Even if they have, did the team at the regulator that compiles the watch list make a typo? And what about dates and addresses? Often they won’t be in the correct format.
It is iDETECT’s job to account for all these potential problems. It extracts client data from IT systems (whether a package or internally created) and algorithms then scan this information to test for potential anomalies. This might be related to ambiguity about contact details or suspicious transactions. Once highlighted, the compliance team can get to work investigating each case in detail.
Understanding the business too
Logos insist on an approach adapted to client needs. “We hire people with the right experience and we train extensively so that they understand where the client’s problems are, and thus how we can help most.” Consultants are involved from the start-up phase through to the go-live and beyond into product support.
iDETECT was first deployed in 2010, and is currently helping nearly 30 global financial companies cut through the noise to find the key information. Mr Iggotti is particularly excited about the potential for the new version of iDETECT due to be released next year. “iDETECT can’t solve every problem, but it is becoming increasingly powerful. We are proud that this is helping our clients become more efficient, so that they can serve their customers better,” he added.
Logos ITS is pleased to invite you to their offices to discover iDETECT during its DATA DAYS, 7th November 2017.
[button color=”blue” link=”http://www.itnation.lu/event/data-days/”]Register Now[/button]