Client Screening
Heamanth K
Risk & Compliance Manager | Financial Crime Specialist | AML | KYC | Fraud Prevention | Sanctions | Regulatory Compliance | Risk Management
Screening
Is Why we need to Screen and screen UBO/Related parties or connected parties
The purpose of screening is mitigating risk of criminals/PEP from being use of Money Laundering.
- Client screening is applied on all type of entities & individuals who deal with financial institutions or who are clients of financial institutions/Banks.
- This is a precautionary measure taken to identify whether client is involved in any negative news or not.
} Broad categories of screening news –
} Allegation- It refers to any allegations against individuals and entities by a regulator or law enforcement agencies.
} Sanctions: It refers to any sanctions levied on Entities/individual by any global law enforcement agencies.
} Convictions/Fines: It refers to any Convictions/Fines levied on Entities/individual by any global law enforcement agencies.
} PEP – (politically exposed person) - It refers to any Convictions/Fines levied on Entities/individual by any global law enforcement agencies.
Screening is an effective risk-management tool, providing management with some assurance that the information provided by the applicant is true and that the potential client has no criminal record.
Negative news, also known as “adverse media” is discovered by searching the public information domain, where news items, publications, and other print or electronic records exist. Negative news research is an indoctrinated core of KYC compliance.
Whom we need to screen?
It is also important that we screen only relevant parties who are influencing decision making or authorize to make investment decisions or authorize to conduct transaction or any kind decision impacting financial and investments and also who are beneficial owners.
How to rule to out hits?
Hit is ruled by following comments:
-Name mismatch
-DOB mismatch
-Nationality/Location mismatch
-Profile/Biography mismatch
-Logic mismatch
For example:
If our investor name is AML Custodians LLC and hit entity name is AML Custodians INC then we will rule out the hit as “False match – Name mismatch”
If our investor name is John Smith and date of birth 14-April-1989 and hit have same details then it is a “true match – Name and DOB are matching”.
All the true hits will be escalated to Compliance/LOB for review and approval.
AML/KYC specialist (subject matter expert) at Cognizant
6 年Very useful information
Independent Senior Advisor - Anti-Financial Crime, Sanctions Compliance
6 年Another interesting aspect on this topic is how one determines how far back to go with the news (how fresh the information needs to be, by type of information), what languages need to be searched and what sources are considered key and reputable sources in the various regions (or not and why not). Having carried out many KYC remediation projects in multiple languages I can attest to the fact that there is no substitute for experienced KYC professionals. Still, training w/ case examples and deatailed guidance will help. Often supervisors know exactly which names to check KYC / monitoring documentation for, in order to review the quality of the assessment.
Assistant Vice President, Barclays
6 年Well presented.?
Senior Manager (Unit Head) - (Advanced CAMS, CAMS, ICA) - Group Compliance (Quality Assurance & Reporting) | Financial Crime Compliance
6 年Screen of UBO, how we can assure the actual UBO details are available in our records if someone keeping benami personals?