Correspondent-based AML¶
As a result of fragmented and poor data quality existing AML platforms are struggling to properly monitor and understand the context of correspondent banking. Often this has meant that emphasis has been on the “lower hanging fruit” of internal clients involved rather than the entire spectrum. KYC of the foreign party in a correspondent banking transaction is very hard to achieve leading to large number of false flags of inaccurate mapping via-vis the organization’s own metadata. In addition, potential genuine issues are missed as clients are treated separately as opposed to combining them into one entity.
Knowledge Graph technologies enable a holistic view to be constructed and can handle these multiple versions of the truth. This enables the reconstruction of links and networks to analyse historic and current transactions. This links into your existing networks to understand the cash flows of foreign counterparties, nature of the business and context in terms of ownerships structures.
This allows you the use of all data related to the entity (both internal and external), to heal or reconstitute the message, completing any missing data-points for subsequent and historic transactions. For this point alerts can be raised and suspicious transactions investigated.