Press Room

Unlock a new future in financial crime compliance through transformative digital risk identification


SYDNEY and ATLANTA — Today at Sibos, the world’s premier financial services event, LexisNexis® Risk Solutions unveiled innovative product initiatives that will transform the way banks and companies in other industries comply with global economic sanctions regulations and other financial crime risks.

For decades, banks and other organisations have relied on screening names and entities against government sanctions and other lists. Companies can now also use digital identity information such as location, behavior and threat intelligence in combination with physical identity information, to better identify and understand the risks presented by a customer or prospect.

Name screening, while necessary to adhere to global regulatory requirements and to protect enterprises from enforcement risk, is an area that has presented significant challenges in the form of labor-intensive human processes, steadily increasing costs and meager rates of accurate risk identification.  Increasing demand for the use of machine learning and other artificial intelligence processes to drive next-generation economic sanctions and financial crime risk identification will allow companies to arrive at more accurate match results with far less human capital investment.  While this approach to list screening is slowly gaining regulatory acceptance in the financial services space, further innovation and adoption is critical to rebalance cost against compliance risk, and it is clear that innovative new approaches and tools are needed.

Daniel Wager, vice president, global financial crime compliance, LexisNexis Risk Solutions, said: “Digital identity attributes present the greatest opportunity to more accurately and efficiently identify financial crime risk arising not from individuals named on government lists, but from the digital footprints that illicit financiers and other bad actors leave behind.  In a global environment, where far more interactions with customers occur in the digital realm than face-to-face, names are only one of hundreds of attributes that can be analyzed to identify potential risk.”  

Illicit financiers, sanctions evaders, arms proliferators and human traffickers rarely use names that can be found on government watch lists or in adverse media.  They fabricate, steal or obfuscate true names to avoid detection, and like fraudsters, they rarely limit themselves to one named account within an enterprise that they target. The use of digital identity data and attributes has transformed the fraud prevention space, and the use of this data through innovative solutions to address economic sanctions and other financial crime risk has the potential to revolutionize the industry’s approach to brand protection and compliance.

Through the analysis of hundreds of digital identity data points, further enhanced through the use of contributory databases and consortia, such as LexisNexis Risk Solutions recent acquisition of the ThreatMetrix® Digital Identity Network®, banks and non-bank corporates can identify enterprise risk in near real-time. This means that organizations can use fewer expensive and highly-trained resources to more accurately assess and control economic sanctions and other financial crime risks across their enterprise, in a fraction of the time required today.

The LexisNexis Risk Solutions True Cost of AML Compliance study of China, Hong Kong, Indonesia, Malaysia, Taiwan and Singapore found that 33 per cent of anti-money laundering (AML) compliance costs are made up of watch list activities, including periodic screening, sanctions operations, and KYC processes. Little innovation has occurred to disrupt the way that banks comply with these global regulations, until now.

About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit LexisNexis Risk Solutions and RELX.

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Marcy Theobald
Senior Director, Global Communications