LexisNexis® Risk Solutions has revealed the newest application of its digital identity intelligence capabilities. LexisNexis® Financial Crime Digital Intelligence is a new solution that leverages digital identity data to transform financial crime compliance workflows.
Assessing sanctions risk associated with transactions is a foundational requirement of all organizations. Transactions have been rapidly migrating to digital channels in recent years and COVID-19 has accelerated this timeline. The faceless nature of digital transactions introduces new opportunity for criminals to evade detection. Digital transactions represent a growing sanctions risk to many organizations as a result and regulators are taking notice. Several recent enforcements by the United States’ Office of Foreign Assets Control (OFAC) have involved companies that facilitated transactions originated by persons in sanctioned countries. This occurred even though the companies’ sites were collecting signals such as IP address and geo-location intelligence that should have identified the risk.
Financial Crime Digital Intelligence combines the power of LexisNexis® ThreatMetrix®, the LexisNexis® Dynamic Decision Platform and LexisNexis® WorldCompliance™ data. The solution offers financial crime compliance teams the ability to keep pace with and mitigate escalating sanctions risks associated with accelerated digital transaction adoption.
LexisNexis® Financial Crime Digital Intelligence provides a dedicated and customized workspace including purpose-built financial crime compliance capabilities such as access to additional sanctions risk features, storage capacity and user role configuration.
Chuck Subrt, senior fraud and AML analyst at global research and advisory firm Aite Group, said, “Data and effectively harnessing it have long been held as the keys to combatting money laundering, terrorist financing and other illicit activity. As the business landscape evolves, financial crime threats are expanding at warp speed. More than ever, successfully disrupting those threats demands smarter defenses through increased integration of digital identity and location intelligence.”
Additional Sanctions Features
Two key features of the Financial Crime Digital Intelligence solution are Sanctions Location Risk and Sanctions List Match. Sanctions Location Risk uses the power of up to 10 different location signals to detect the location-based sanctions risk associated with a digital identity in real time, then delivers an assessment of that risk to users. Sanctions List Match allows customers to automate a call from the Dynamic Decision Platform to WorldCompliance data and receive an immediate “yes/no” response when there is a match to a sanctions list. This allows compliance teams to make the decision to either terminate the transaction or refer it for manual review in accordance with their specific risk appetite and tolerance.
“Many organizations struggle to mitigate financial crime risk using legacy methodologies when virtually everything about the way consumers transact with them today has changed. These legacy workflows have not kept pace with the sweeping evolution in technology,” said Grayson Clarke, senior vice president of market planning at LexisNexis Risk Solutions.
Clarke continued, “Financial Crime Digital Intelligence is igniting real change, bringing the revolutionary power of digital identity for financial crime risk assessment to life – first for sanctions risk and soon for additional financial crime use cases. Organizations can now mitigate risk within their digital channels and bring their processes into alignment with the digital era.”
LexisNexis Risk Solutions will launch additional financial crime compliance integration capabilities accessible via Financial Crime Digital Intelligence to address other use cases.