Published: Monday June 08, 2020
Screening out individuals you don’t want as customers can be a massive and complex task if you’re using the wrong solution. GBG Ongoing Monitoring makes doing business easier and safer.
Regulated organisations must check their customers regularly to determine if they’ve become a Politically Exposed Person (PEP) or been sanctioned since they were last checked. This means checking at the point of onboarding and then again, ideally, every 24 hours.
It’s no mean feat. Globally, there are around 1.5million individuals on PEPs lists. With more than 100 elections scheduled for 2020 potentially leading to thousands of personnel changes and new PEPs, the scale of screening is massive.
Political exposure is also complex, with some PEPs being more exposed than others. For example, of the 1.5million individuals on PEPs lists, 21% of them are Tier 1, 22% are Tier 2, 42% are Tier 3 and 9% are PEPs by Association, while 5% are PEP businesses
What’s more, there more than 33,000 sanctioned individuals and 11,000 sanctioned entities that you must avoid doing business with, or face penalties.
Explore the map below to see the numbers of sanctioned individuals and organisations in countries around the world:
There’s an added challenge in that many ongoing monitoring solutions return false positives, erroneously flagging individuals who don’t pose a risk but still need to be reviewed, wasting your time and resources.
Regulators around the world take compliance seriously. More than one penalty was issued every week in 2019, collectively costing those involved more than $8bn USD. That’s around twice as many penalties (29) and double the fines ($4.27bn) issued in 2018.
And not only do you need to carry out all of this constant due diligence, you also need to evidence it so that if an auditor comes knocking, you can prove you did everything within your power to comply with regulation.
So: the challenge is vast, many of the available solutions are poor and the risks of non-compliance are serious. It’s a difficult position for any organisation to be in and it requires a sophisticated solution.
GBG Ongoing Monitoring
GBG’s Ongoing Monitoring solution helps reduce false positives and the need for manual review, features a robust audit trail and makes it easier to configure screening according to your risk-based approach.
Our fuzzy matching technology makes matching more sophisticated, while our expert review adds layer of context that overly tech-reliant solutions will always fail to understand.
For example, a Jane Doe who’s in the news for fighting fraud could be flagged by a lesser solution because of the simple word association, whereas our human reviewers understand the nuance and don’t waste your time by flagging her unnecessarily.
With fewer false positives, you can focus your time, resources and attention on the cases that pose a genuine risk and on creating a better experience for honest customers. What’s more, the breadth of our data means false negatives are reduced too – protecting you against bad actors who might otherwise cause harm.
Configurability is also key to our solution. Screening can be tailored to suit your organisation’s risk-based approach, internal processes and unique challenges. For example, you might choose to run daily checks on higher-tier PEPs, weekly checks on mid-tier PEPs and monthly checks on low-risk PEPs.
Add to this our knowledgeable and accessible team who are on hand to assist with any enquiries and you have a robust ongoing monitoring solution that can’t be matched.