Tuesday, December 6, 2022

HOW DO YOU KNOW WHEN IT'S SAFE TO STOP CONDUCTING ENHANCED DUE DILIGENCE?


You are a junior compliance officer performing enhanced due diligence on an important new bank client for your compliance director, who is himself under pressure from New Accounts to meet a deadline to present a clean bill of health on what the bank believes will be a new, lucrative source of business. You are concerned that your EDD might miss something that will later come back to haunt the bank if the new client turns out to be a financial criminal, because he is from a high-risk jurisdiction.

With all this new business, north to mention your career, at stake, how do you know when to stop conducting EDD?

Since you cannot be one hundred per cent certain, and given the huge amount of information that you are inefficiently plowing through, to achieve a successful outcome require next-generation tools, which means analytics in an artificial intelligence platform with machine learning. Whether you can find that elusive negative information on the client, hidden from view in an infinite number of online documents, may depend upon the ability of a program employing artificial intelligence to bring together disparate elements that, by themselves see to be meaningless, but when extrapolated and placed in context due to machine learning capabilities, can give you the answer that you need, and on time.

Providing frontline compliance staff with these new next-generation tools, powered by AI, can make the difference between successfully finding the information which will protect the bank from untoward events in the future, and complement your risk-based compliance program. 


No comments:

Post a Comment

Note: Only a member of this blog may post a comment.