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LexisNexis Financial Crime Digital Intelligence is a new solution that leverages digital identity data to transform financial crime compliance workflows.
Transactions have been rapidly migrating to digital channels in recent years and COVID-19 has accelerated this timeline.
Assessing sanctions risk associated with transactions is a foundational requirement of all organisations due to the faceless nature of digital transactions that has introduced a new opportunity for criminals to evade detection.
As the business landscape evolves, financial crime threats are expanding at warp speed, according to Chuck Subrt, senior fraud and AML analyst at global research and advisory firm Aite Group.
“Data and effectively harnessing it have long been held as the keys to combatting money laundering, terrorist financing and other illicit activity,” Subrt said.
“More than ever, successfully disrupting those threats demands smarter defenses through increased integration of digital identity and location intelligence.”
LexisNexis Financial Crime Digital Intelligence is designed to offer financial crime compliance teams the ability to keep pace with, and mitigate escalating sanctions risks associated with accelerated digital transaction adoption.
According to Grayson Clarke, senior vice president of market planning at LexisNexis Risk Solutions, outdated workflows are putting organisations at risk.
“Many organisations struggle to mitigate financial crime risk using legacy methodologies when virtually everything about the way consumers transact with them today has changed,” Clarke said.
“These legacy workflows have not kept pace with the sweeping evolution in technology.”
Drawing from existing LexisNexis systems including the ThreatMetrix, Dynamic Decision Platform and WorldCompliance data, LexisNexis Financial Crime Digital Intelligence aims to provides a dedicated and customised workspace including purpose-built financial crime compliance capabilities such as access to additional sanctions risk features, storage capacity and user role configuration.
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.
Two key features of the Financial Crime Digital Intelligence solution are Sanctions Location Risk and Sanctions List Match.
Sanctions Location Risk uses 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 users 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 – allowing for 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.
“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," Clarke said.
"Organisations can now mitigate risk within their digital channels and bring their processes into alignment with the digital era.”
[Related: 5G Networks teams up with DXN]
Nastasha is a Journalist at Momentum Media, she reports extensively across veterans affairs, cyber security and geopolitics in the Indo-Pacific. She is a co-author of a book titled The Stories Women Journalists Tell, published by Penguin Random House. Previously, she was a Content Producer at Verizon Media, a Digital Producer for Yahoo! and Channel 7, a Digital Journalist at Sky News Australia, as well as a Website Manager and Digital Producer at SBS Australia. Nastasha started her career in media as a Video Producer and Digital News Presenter at News Corp Australia.
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