Our last blog explained why and how customer-centricity is key to successfully implementing holistic AML and achieving a ‘single view of the customer.’
This week, we introduce Napier’s Client Activity Review (CAR), explain how its features combine to combat financial crime, and demonstrate why it is the global leader in the financial industry’s journey towards holistic AML.
Napier’s Client Activity Review goes beyond Knowing Your Customer
The Client Activity Review (CAR) uses an innovative customer-centric approach to best serve the financial crime compliance of institutions. It consolidates and analyses their clients’ data without the daunting and risky ‘rip and replace’ cleanouts of compliance systems which we discussed in a previous blog. Customer behavioural analytics are layered across and integrated with existing systems transversally. This enables you to Understand Your Customer, rather than merely Know Your Customer.
CAR automatically and continuously integrates every customer’s data into a unique, comprehensive view. This includes transaction-monitoring, payment variations, or financial screening results - for instance, altered beneficial ownership status and KYC data. This single, automated control centre has an all-encompassing 360° view of customers which detects, alerts, and enables your business to triage any behavioural changes or anomalies if they occur.
Napier CAR’s key features
CAR is layered across your existing KYC and transaction monitoring systems, so it can integrate data from each of them without replacing them. This immediately provides you with a full transaction history, complete with any alerts that have been triggered for that customer over a specific timespan.
The client review schedules are automated according to the requisite frequency for each client. This can be based on any characteristic of a customer, not just the risk score. An alert can as easily be triggered by a customer relocating to a new home locally as it can by one who takes up a position at company in a high-risk country.
Real time graphic analysis
CAR presents a real-time graphical analysis of a customer’s behaviour over a variety of dynamically selected timespans. This detection and highlighting of anomalous activities can be compared to the same timespans and activities of similar customers. Unique customer behavioural trends can also be aligned with that of previous or equivalent timespans. Your business will immediately be alerted to potentially suspicious activity and assess what investigative action is required, without cross-checking between different systems and applications.
Complements rules-based monitoring
CAR’s use of customer behavioural analytics galvanises the rules-based KYC on-boarding approach by making it more flexible and efficient. Its automated control centre can correlate customer behaviour assessed as low risk at the on-boarding stage over any subsequent timespan and compare it with similar customers. We can thus see how CAR is contributing to the fight against the money laundering practice of money muling, which we discussed in a previous blog.
Enhanced risk assessment
CAR significantly enhances the assessment of customer risk. By unleashing the power of machine learning, traditional rule-based deterministic scores can be augmented with machine learning generated scores based on multiple data points and aggregations.
Napier CAR’s key benefits - size doesn’t matter
Napier’s Client Activity Review provides benefits to any financial institution, regardless of size.
The financial crime compliance teams of large Tier 1 banks can improve cost-effectiveness by aligning teams and systems in terms of how AML is implemented. The holistic view of clients inculcates an equivalent approach throughout each institution, significantly reducing incidents of the damaging silo effect, which we have discussed in a previous blog. Relationship managers at your coalface will embrace CAR. It will enable them to work more effectively and profitably with existing customers and more accurately assess the viability of potential ones.
The financial crime compliance teams of smaller banks who are manually integrating systems and poring over endless spreadsheets will also benefit from the holistic AML approach. CAR can integrate and automate the compliance process, conserving resources better spent on building your business.
Napier’s CAR enables organisations of any size to:
- Respond proportionately and appropriately in real-time to alerts about customers’ data which are inconsistent with their unique expected behaviours.
- Automate the review of client activity on a continual basis, allowing your business to move towards dynamic risk-scoring and perpetual KYC.
- Escalate the number of suspicious activity checks, as holistic AML checks are automated.
- Understand why anomalous behaviours have been flagged as suspicious, determine what action to take and do so timeously, thereby reducing the number of time-consuming responses, often to false red flags.
Napier’s Client Activity Review is the future of holistic AML
There is no need for knee-jerk ‘rip and replace’ projects. CAR adds the efficiency, centralised control and customer-centric insight needed to enhance your AML framework. CAR actively combats the silo effect by integrating KYC and transaction monitoring data. CAR then integrates the insights, gleaned through transaction monitoring, back into the ongoing KYC system continually. In conclusion, the ability of Napier’s CAR to manage customer risk and combat financial crime surpasses that of linear, process-driven systems, but does not require them to be retrenched- it can enhance and enrich their effectiveness in the fight against financial crime.
This article is the final instalment of a larger paper on the importance of a holistic approach to AML. If you would like read more about the benefits of a holistic approach to AML, download Understand your customer: The importance of a holistic view of client activity in AML.
Napier is a London-based specialist compliance technology company founded in 2015, with offices in the USA, Ukraine, Singapore, Australia, and Malaysia. Trusted by the world’s leading financial institutions, our next generation Intelligent Compliance Platform is transforming AML & Trade Compliance. We design and build compliance technology to help companies in any sector comply with money laundering regulations, detect suspicious transactions, screen potential customer & business partners and help analysts predict customer behaviour. Napier uses deep industry knowledge and cutting-edge technologies such as artificial intelligence and machine learning to help businesses detect suspicious behaviours and fight financial crime.