Not all high-risk customers are created equal
Managing risk is often a one-size-fits-all approach. A typical risk system uses generic models that incorporate numerous risk factors, resulting in large volumes of high-risk customers. But all high-risk customers are not created equal. A local charity, for example, likely does not present the same level of risk to your institution as an international Non-Governmental Organization (NGO).
Nasdaq Verafin’s high-risk management approach allows you to define what risk means to you, and stratifies risk within high-risk categories, such as Money Services Businesses (MSBs), Private ATM Owners, and Marijuana-Related Businesses (MRBs). This ensures you are reviewing the right customers at the right time and provides greater visibility to the examiner of your institution’s risk profile.
Features
Benefits
Get an accurate view of your institution’s customer-risk profile
If you are trying to capture all potential risk factors in a single risk agent, you are likely creating too many high-risk customers to review, leading to increased workload and compliance costs, along with an inaccurate view of your institution’s customer-risk.
Nasdaq Verafin increases efficiency by first identifying high-risk customers, then automatically segmenting and stratifying those customers relative to their specific high-risk category.
Save time with fewer high-risk customer reviews
Not all high-risk customers are created equal. For example, a grocery store that simply cashes small checks likely poses less risk to your institution than an international money transmitter; however, without stratification, you are expected to spend the same amount of time and effort monitoring and reviewing both MSBs.
Nasdaq Verafin stratifies all customers, regardless of category, resulting in less truly high-risk customers for you to investigate, saving you time by allowing you to focus on the ones that pose the greatest risk to your institution.
Easily show examiners your High-Risk Customer categories and how they tie into your EDD review processes
Examiners are putting a greater emphasis on Customer Due Diligence (CDD) and EDD procedures for higher-risk customers.
Nasdaq Verafin will help you prepare for your next exam with confidence by stratifying risk across your customer base, even within higher-risk categories of customers. This will allow you to provide examiners with a more accurate picture of your institution’s risk profile, and more visibility of the customers that pose the greatest risk to your institution.
