Configuration and customisation

Introduction

Money laundering and financial crime is on the rise; according to SmartSearch’s latest report EV Uncovered III -Emerging financial sectors, over the past year, 40 percent of regulated firms have seen a rise in money laundering attempts, while more than a third (36%) have been a victim of financial crime in the past six months.

In response to this increased risk, anti-money laundering (AML) regulation is also tightening, meaning that having robust systems in place to identify and mitigate money laundering has never been more important for regulated businesses in the UK.

However, many are still not implementing compliance processes and procedures as they should. SmartSearch’s research found just 22% of firms ‘always’ verify new clients, while just 23% ‘always’ screen for sanctions and PEPs. While there are many reasons why so many firms are failing to take their obligations seriously – some think manual checks are sufficient; others naively believe that they are not at risk of financial crime – one of the most common issues is inefficient AML solutions.

For many years now it has been widely acknowledged that digital AML checks are more reliable than manual checks – which is why it is so worrying that more than half (52%) still rely on manual checks to some extent. But not all digital solutions are the same, and unfortunately rather than making life easier for regulated firms, many are actually doing the opposite, and creating more work for compliance teams, which is putting off many from employing AML solutions altogether.

In the UK, regulated firms are obliged to run identification and verification checks on all new clients, screen against sanctions and PEPs, and then monitor all clients for any changes to their risk level.

Most firms utilise a third-party solution for their AML checks, which generally means they have their own customer onboarding process and customer database, with a separate system for their AML processes.

In practical terms, this means entering client details into two or sometimes three or four separate databases – depending on whether or not they are using multiple vendors for their verification, screening and monitoring. Not only is this time-consuming and resource-heavy, but the duplication of data leaves the firms open to errors which could result in an AML breach. 

A configurable solution

In the digital age, regulated firms are not just looking for digital compliance solutions, they are looking for a digital compliance solution that also offers additional benefits to make their existing onboarding and monitoring processes slicker and more efficient.

Firms do not want a compliance solution that has to be run separately from their day-to-day operations, they want configurable solutions that incorporate compliance into their existing procedures, and that is where SmartSearch can help.

SmartSearch is a leading provider of AML and KYC (Know Your Customer) solutions, and this year, launched its next-generation platform that takes digital compliance to new heights.
Developed using cutting-edge technology and customer feedback, the platform includes several significant upgrades that singles it out in the market as the “gold standard” of AML and KYC solutions. Each enhancement offers its own unique value and improvements, and when used in collaboration offers an automated and configurable compliance solution:

• User management: SmartSearch’s next-generation platform allows firms to improve efficiencies,
  save time and create a seamless customer onboarding process by offering
  frictionless compliance that fits seamlessly into existing processes. By
  having all compliance checks on one platform – and integrating this with
  clients’ existing systems - users can take back full control of their compliance
  processes by managing everything from one place. This takes all the pressure
  off customer onboarding and saves clients valuable time and money.
  
  
• Search subjects: SmartSearch is constantly improving its search function and this latest update is the most advanced yet. SmartSearch’s innovative new search configuration capabilities allow clients to customise their search settings - from adding specific search types to a watchlist to customising mandatory and nonmandatory fields -this extra layer of configurability has never been seen before in the compliance space. The result is that clients have the ability not only to run highly accurate initial identification and verification checks but also automatically re-run client searches meaning they always have access to the latest search outcomes and audit trails which futureproofs their AML compliance.This is not only the most cost-effective risk management strategy because it enables customers to streamline their onboarding and maintain a continuous compliant position, but also enables them to forge better long-term relationships with their own customers through better client knowledge and understanding.
  
• Tailored risk profiles: SmartSearch’s previous solution already boasted the highest match and pass rate on the market thanks to its dual bureau data solution i.e. sourcing data from two of the world’s leading credit agencies – Experian and Equifax. The latest update sees a third data partner added to the platform – TransUnion. By offering triple bureau accuracy, SmartSearch is able to tailor the search to the client’s own risk profiles, meaning the solution can be more granular in terms of the match and pass rate. This vastly reduces false positives ensuring clients really know their customers.
• Automation: The new enhanced platform enables users to create fully automated, bespoke workflows that assign, notify, and create applications based on rules. This then provides an outcome/action through workflow triggers and capabilities and automatic decision capabilities. By working alongside clients’ existing internal processes, this latest enhancement revolutionises the compliance process by not only saving clients time and money and creating a frictionless customer journey but also giving them peace of mind that their compliance is in order.
• Fully customisable risk profiles, tracking and reporting: As well as automating workflows, the latest platform update enables compliance solutions to be fully tailored to each businesses’ unique needs. Clients can now screen custom risk profiles – using the triple bureau functionality - clearly identifying where further investigation is needed while offering a seamless onboarding experience for genuine customers. The new platform also offers custom subject fields, a comprehensive feature that gives users the flexibility to store all relevant information on a search subject, based on the business’ individual needs. From categorising risk levels to allocating further review, users have complete control and oversight of their compliance processes. The platform also now offers real-time tracking and audit trails and a self-serve reporting tool which enables firms to create tailor-made reports. These enhancements provide a clear and transparent view of all activities relating to a search subject as well as up-to-date audit trails, invaluable to any compliance programme as it mitigates risk and helps demonstrate compliance to regulators and offers proactive risk management to ensure clients are always one step ahead of the evolving compliance landscape
  
  
• API functionality: Integration has been a key offering of SmartSearch for many years now, but this latest update has made integrating the platform with a client’s existing system even easier – and slicker – thanks to RESTful APIs capabilities. Through RESTful APIs any features and services will be made available via the SmartSearch platform, improving the speed of integration and the level of support that SmartSearch can offer clients. This enables SmartSearch to build a seamless and comprehensive compliance solution for each client - tailored to their own organisation and existing processes – that can be completed within 24 hours.
• Co-branding: The enhanced platform also offers firms the ability to customise and co-brand the SmartSearch platform. This means that when a regulated firm’s own clients use the platform, they will see the branding they are familiar with throughout the journey – whether that is running a search creating a report or in any communications such as emails. This approach minimises customer drop-off rates as clients gain confidence when they see the firm they are working with associated with each compliance request.