Fenergo, a  provider of digital solutions for Know Your Customer (KYC) and client lifecycle management (CLM), has launched FinCrime Risk .
This application programming interface (API)-first software as a service (SaaS) solution will allow financial institutions to centralise and automate risk assessment processes and streamline anti-money laundering (AML) compliance across all business lines and geographical locations.
With rising financial crime, changing sanctions measures and increased regulatory scrutiny, manual and siloed risk scoring solutions used by financial institutions often fail to accurately risk assess clients and counterparties.
According to research conducted by Aite Novarica Group, 38% of financial institutions use two or more systems for risk, reflecting the high number of firms that use different systems for different business lines and asset classes.
FinCrime Risk enables firms to consolidate risk assessment into a central platform and digitalise manual processes, driving operational efficiencies and enhancing client onboarding experiences.
The solution will also help financial institution meet regulatory obligations such as the European Union’s Fourth AML Directive.
They are obliged to identify exposure to countries with strategic deficiencies in their AML/counter funding of terrorism (CFT) regimes and apply enhanced due diligence to associated clients categorised as high risk.
In the US, it is expected that the forthcoming Notice of Proposed Rulemaking (NPRM) on effective AML programmes will require financial institutions to implement mandatory risk assessments by law.
Fenergo said that the changing regulatory landscape underlines the need for financial institutions to be prepared to demonstrate to regulators their ability to perform effective risk assessments or be held accountable.
It features pre-configured Financial Crime Risk Model accelerators based on criteria recommended by the Financial Action Taskforce (FATF), which were designed by Fenergo regulatory experts. These are maintained on a dedicated no-code user interface.
“It was important for us to design a product that can be used across a wide range of geographically dispersed financial institutions, from corporate and investment banks to universal banks and payment service providers, ” says Stella Clarke, chief strategy officer at Fenergo.
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