EXPERT FORECAST : BANKING AND FINANCE
– can enhance efficiency and effectiveness in PEP risk management . Regulators encourage the use of newer technologies in risk identification and screening processes . At the same time , the use of Artificial Intelligence ( AI ) in regulation technology has increased substantially .
These solutions help address some common problems in traditional PEP screening approaches .
Often , having more data to screen against means more false positives , which can lead to compliance gaps . As a result , some PEP screening processes are simply turned off , especially when teams are too small to remediate high numbers of false positives . In other cases , teams use large ‘ If-then ’ spreadsheets to assess PEP risk based on organisational policy , which creates large files that require actively managed , manual updates – again , likely leaving gaps . A best practice approach is using software to automate PEP identification and ongoing monitoring . Advanced solutions enable risk scoring of PEPs , enabling users to allow them to configure workflows based on identified risks , while also allowing for more auto-resolve options without increasing risk . By improving efficiency and freeing up human resources for other tasks , FIs can achieve strong returns on investment by including scoring methodology in the technology workflows .
Mitigating PEP risk with name-matching
Prioritising the reduction of false positives by enhancing record-matching practices is key to streamlining PEP risk assessment . By leveraging statistical modelling , name databases and Artificial Intelligence , it is possible to reduce the repetitive , manual tasks of Level 1 remediation .
This eliminates the need for FIs to spend resources and time remediating matches that could reliably be resolved through an advanced name matcher .
Implementing such name-matching technology can be done via a replacement of software solutions or by integrating a post-processing engine , which refines the matches produced by an existing system to a more manageable number .
Technology holds the promise to stem the tide of corruption
Elections are not the only situations associated with bribery and corruption risk . Forceful takeovers and coup d ' états are happening routinely around the globe . FIs should move now to review their PEP screening measures to ensure teams are operating for the best efficiency and optimal impact . � www . intelligentfin . tech
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