Know Your Customer (KYC) Compliance
Being able to accurately and uniquely identify a client, counterparty or vendor is the foundation of effective Know Your Customer (KYC) due diligence, on-boarding and monitoring. Alacra maintains up-to-date lists of rated, regulated and listed entities and is an expert in uniquely identifying the “right” entity.
Alacra Engagements
Multinational Energy company monitors corporate events
Multinational bank builds fraud monitoring system
Multi-National Energy company monitors corporate events
Challenges
A multinational energy company had over 5,000 entities that it needed to review as part of its on-boarding and compliance process. In particular, they wanted to be able to monitor changes to the regulated and listing status of the entities.
Solution
The Alacra Authority File, tracks material changes to all the regulated and listed entities, highlighting when regulation is dropped and/or securities are delisted. In addition, it tracks corporate event changes, name changes, address changes and ultimate parent changes. All of these items are monitored in Alacra Compliance Enterprise (ACE), the Alacra compliance workflow software application.
Result
Through ACE, the client was able to conduct simultaneous search queries across all multiple regulatory watch lists; premium databases; adverse news and web resources. They were able to follow a globally consistent compliance standard with clear audit trails for regulatory reporting. They also benefited from time savings combined with capacity increases, enabling better utilization of their client on-boarding resources.
Multinational bank builds fraud monitoring system
Challenges
In response to increasing incidents of fraud, a multinational bank set up a group to identify and prevent fraud amongst its corporate clients. They wanted to build an alert-based system to highlight changes in regulatory status for each client.
Solution
Alacra was able to provide a weekly feed of the Alacra Authority file (AAF) which monitors entities regulated by over 50 regulators world-wide. It was also able to provide alerts on any changes in the regulatory status of a entity.
Result
The bank’s counterparty fraud group received timely alerts when a client was added to, or removed from, a regulator’s oversight. In addition, the they were able to use additional information in the AAF file (including identification of aliases and former company names, and the most comprehensive entity identifier mapping) to help the bank’s analysts uniquely identify their clients and, thus, reduce false positives.