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New capability considers a company’s registration status as an indicator of AML/BSA compliance risk
CLEVELAND (February 9, 2022) – AML RightSource (“AMLRS”), the leading provider of Anti-Money Laundering (“AML”), Know Your Customer (“KYC”), and Bank Secrecy Act (“BSA”) compliance solutions, has added an Active/Inactive AI Agent to its QuantaVerse Platform. This capability adds another way that the solution evaluates AML risk related to financial transactions and the entities involved with them. This function further extends the QuantaVerse Platform’s position as the industry’s most complete AML compliance technology platform.
The new Active/Inactive AI Agent automatically checks with various data sources to confirm an accurate jurisdiction and assess if the entity has an active, inactive, or some other registration status. An active registry requires that the entity is keeping up with registry obligations including paying fees in their jurisdiction. For example, in the U.S. that could be a corporate registration in the state where the company is headquartered. When analyzing a transaction-triggered evaluation, related counterparties, which are not as well known to a focal entity’s bank, are also checked for active/inactive status.
Any entity that is transacting business but has an inactive registry is taken into consideration by the platform. When status is questionable, risk scores will be increased and the issue will be called out to investigators in QuantaVerse Financial Crime Investigation Reports (FCIRs). This concern is reflected in the overall reputation risk score, is called out in the key risk table, and gets considered by the QuantaVerse decision engine with all other reputation agents. If a counterparty is found to be inactive, the risk is associated with the counterparty. Counterparty risk also impacts the risk score of the associated focal entity.
“Without this solution, investigators must manually search various databases to confirm registration status. This, along with all the other tasks required during an investigation, increases complexity and unnecessarily wastes the time of investigators,” notes David McLaughlin, SVP Head of Technical Integration, AML RightSource. “The time required to examine these details using traditional methods means focal entities and very active counterparties might get checked, but less involved counterparties go without scrutiny. It’s yet another manual process we can automate; one which may not get done because it’s too far removed from the primary investigation process.”
This new agent also speeds up the high-risk entity review (HRER) process, which typically requires a lot of human intelligence. Automating the process of checking whether or not a company is actively registered in its jurisdiction saves significant time and effort by handing investigators a more complete customer risk analysis.
“Without an automated tool looking at whether or not a company is actively registered in its jurisdiction, many financial institutions would only uncover the information through periodic due diligence, which may happen only once every two years or more,” confirms McLaughlin. “Only if a transaction is alerted might an investigator do this research. And rarely would an investigator do this for every counterparty associated with an alerted identity.”
The new Active/Inactive AI Agent expands the portfolio of reputation-based agents in the QuantaVerse Financial Crime Platform that handle the time-consuming and manual tasks that otherwise fall to human investigators. It complements the portfolio of agents that look at a broad set of potential risk-bearing characteristics and make the QuantaVerse Platform the industry’s most comprehensive. This agent also complements what the QuantaVerse system already does to understand the transaction behaviors of entities. Examples of other activity captured, evaluated, and considered by the QuantaVerse platform include identifying dormant transacting accounts,￼ numerous financial crime transaction typologies, and accurate Volume & Value (V&V) analysis.
This function leverages corporate registration data that QuantaVerse has introduced as a data source included in its platform. QuantaVerse’s new AI agent connects with the data source’s API, checks the name and jurisdiction of the entity, and pulls all the available records on the individuals or companies.
The QuantaVerse Platform cuts compliance costs and lowers risk by automating every phase of the AML process. The Platform uses AI and machine learning to reduce false positives and automate investigations. The QuantaVerse Platform is proven to help regulated entities become meaningfully more efficient with their AML investigations and effective in reducing risk by identifying financial crime missed by legacy systems and processes. To learn more, please visit: www.quantaverse.net.