The AML-TRACE software has a built-in risk assessment framework that captures financial fraud risk, right from onboarding till the end of the financial relationship with the customer.
Right at the start of a business transaction or relationship, assessing the risk during customer onboarding is crucial. In this assessment, a series of evaluations are done so that the company’s stakeholders get an accurate estimate of the customer’s potential financial risks.
In the absence of this assessment, the chances are that hefty fines will be slapped on your business. This will cause a direct fall in your revenue and the consequent revenue rate as now, your company’s reputation has been adversely impacted.
Use AML-TRACE and attain optimum levels of financial security for your organization. With a wide range of features that can be customized as per your business needs, it is the one-stop solution for minimizing all financial frauds.
1. Risk categorization
The software’s risk-based score parameters help you make advanced risk assessments on the basis of currency, country, customer segment, or product. You thus get a typology of risk classifications.
2. Risk models based on customer categories
AML-TRACE has AML risk scoring models for various customer categories including corporations, individuals, nationalities, designations, and much more. We incorporated this feature, recognizing that each customer type has different kinds and extent of risk associated with them.
3. Easily configurable risk parameters for all risk models
The application’s risk parameters can be configured in several ways, as per the various customer types. For instance, these factors could be the form of company ownership, whether PEPs are involved, the risk associated with the country where the client is situated, relationship duration, and so on.
4. Use of weighted average scores
To get the most approximate risk assessment, due weightage is given to relevant risk factors instead of consideration of all factors to arrive at a cumulative risk score.
5. Customer risk score scale
All clients are assigned a risk score between 0 and 100—the more the score, the greater the fraud risk associated with the customer, and vice versa.
6. Balancing out inefficiencies due to missing risk data elements
Sometimes, some data related to the risk factors are missing or not available at all. Ideally, these need to be included in the customer record. But in case of their unavailability, AML-TRACE is structured in a way that it considers the institution’s criteria to arrive at the required score.
7. Dynamic and flexible risk model
The rating of customer risk can change due to two reasons. First is the change in risk-specific parameters as new risks are identified. The second is during reviews that are done periodically or on an ad-hoc basis. AML-TRACE’s risk model generates a revised risk rating in both cases.
8. Access to customer history
If there is a manual change in the risk rating despite a system-generated risk score and rating, you can identify the reasons for the same by looking at the customer history.
9. Arrival at final risk scores
Eventually, after following this customer risk assessment methodology, the final risk score is calculated and classified into the categories of Very High, High, Medium, or Low. Accordingly, the level of diligence is kept the same, increased, or decreased.
In this way, by using AML-TRACE, you can set the frequency at which the customer records need to be reviewed, updated, and analyzed. To harness the power of this anti-money laundering software and know more about it, give us a call on +971 50 7724164.